Telegraph article:
http://www.telegraph.co.uk/news/politics/conservative/882965...

It strikes me that the really worrying - and damning - stuff is the stuff that no one seems particularly bothered by. Using Werritty as an adviser: a bit naughty. A definite lack of judgement.

But how come no one is asking real questions about these firms that had been set up to further Fox's political agenda? There's Atlantic Bridge, a charity that apparently did no charitable work. And then there's Pargav. Some choice extracts:

It was designed to pursue the defence secretary’s personal political agenda and guaranteed its financial backers “total anonymity”.
...
The firm had no shareholders and no registered employees. Neither Mr Werritty nor Dr Fox appeared on any legal paperwork.
...
It also guaranteed that the name of its backers, many of whom were Tory donors with a long association with Dr Fox, would never be revealed. Strict rules on political donations say they need to be fully declared.

Questions:
Is no one asking questions because this kind of set-up is commonplace? Companies set up to promote a politician's political agenda, but kept at arm's length so as to dodge the regulations on political donations?
How can this possibly fit in with party funding regulations? If this is a legal way of funding a politician's agenda, then it makes a mockery of laws on 'conventional' political donations.
What were the donors thinking? If they're already big donors, they must be aware that political donations are generally meant to be recorded. If the ability to make political donations while remaining anonymous is a selling point, then they must know that something is - at best - questionable.
How common is this setup? What other politicians have firms intended to be a way of channeling donations through anonymous channels? I simply don't believe that Fox would be the only one.

This is absolutely not a party political issue - if Fox is doing it, I wouldn't be surprised if politicians of all stripes are doing it.

Am I being totally naive about this? Is it OK to channel anonymous donations in this way?