Ken Livingstone’s race advisor has been suspended after being accused of funding irregularities.
Lee Jasper has vowed to clear his name and said "a deliberate attempt is being made to divert attention from the real issues confronting London at the Mayoral election."
He went on to accuse the Evening Standard of conducting a systematic campaign against black organisations in London.
Mr Livingstone said he believed Mr Jasper would be exonerated and a police investigation would help put to an end to the accusations.
He explained the event had become "a trial by the media" and he went on to describe it as "a disgraceful political charade".
The London Development Agency (LDA) and the Mayor have been under scrutiny after reports suggested it used its money irresponsibly.
The LDA is one of a number of organisations that are busy preparing London for the 2012 Olympics and working on the Thames Gateway development.