The new head of Scotland Yard is facing questions about his role in the £3m contracts affair that contributed to the downfall of Sir Ian Blair.

Sir Paul Stephenson, the deputy commissioner who will take over as caretaker when Blair steps down in December, oversaw a confidential audit of contracts given by the Metropolitan police to Andy Miller, Blair’s close friend and skiing partner.

The 2005 audit was carried out by independent consultants to address concerns that Blair might have acted improperly in helping his friend. Insiders say that it effectively whitewashed Blair’s role.

The Met admitted yesterday that Stephenson was interviewed “as a witness” early last week as part of the official inquiry into how £3m of Met contracts were given to Impact Plus, Miller’s management consultancy.

The contracts affair - first revealed by The Sunday Times three months ago - played a key role in the decision by Boris Johnson, the London mayor, to force Blair’s resignation last week.

Blair’s decision to leave after Johnson told him he faced too many “distractions” sparked a row with Jacqui Smith, the home secretary.

This weekend they were involved in a bitter exchange of letters in which Johnson asked that Stephenson be allowed to stay for “a fairly lengthy consolidation period” before a permanent successor to Blair is appointed.

There is no suggestion that Stephenson, who became deputy when Blair took office in February 2005, has acted improperly.

Colleagues say, however, that his failure to question his then new boss about his friendship with Miller might call his judgment into question. Stephenson’s friends say he did recommend in the review that future contracts be put out to “full and proper” competitive tender.

Blair will be questioned by an official inquiry later this month about what influence he may have had in granting the contracts.

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