KMC International, a recruitment firm headed by the wife of work and pensions secretary Peter Hain, has denied any impropriety in its work for government departments.

The News of the World reported that the Parliamentary Commissioner for Standards, John Lyon, was being asked to investigate claims of a conflict of interest regarding the position of Elizabeth Haywood - Hain’s wife - as managing director of KMC International.

In a statement, KMC said that it had been a “preferred supplier” for government recruitment contracts since 1997, four years before Haywood joined the company.

“Preferred supplier status was achieved on a full Cabinet Office competitive tender basis, and is no guarantee of obtaining actual contracts,” it said.

“Companies on the preferred supplier list are then invited to compete for each individual recruitment assignment. The current preferred supplier list consists of 38 companies, of which KMC is one.

“At no time has KMC undertaken any contracts for any government departments or agencies during periods Peter Hain has held responsibility for them.”

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