The report alleges that Mr Menzies rang a 78-year-old former staff member at 3.15am last December, saying he was locked in a flat by “bad people” and needed £5,000 as a matter of “life and death”.
The sum, which rose to £6,500, was eventually paid by his office manager from her personal bank account and subsequently reimbursed from funds raised from donors in an account named Fylde Westminster Group, the newspaper says.
Speaking to Beth Rigby on the Electoral Dysfunction podcast, Ruth – who led the Scottish Conservatives for almost a decade – predicts that Mr Menzies will resign.
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She said: “The Tories were supposedly told about this three months ago, and this is the first we’re hearing about it.
“And by reading the story, it looks very much like this lady told her local association, raised the red flag, then told the parliamentary authorities.
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“The chief whip then told CCHQ, which is Tory HQ. Nothing’s happened and now she’s quoted in the newspapers.
“So, I mean, it does appear that there’s local association wrath about the way they’ve been treated by this MP. So, you know, I think this is a very difficult one, and I would find it difficult to believe that an investigation can be held and he can be cleared in time to stand a general election.
“In fact, I would be surprised if he survives the week here and doesn’t just resign.”
In a statement to The Times, Mr Menzies said: “I strongly dispute the allegations put to me. I have fully complied with all the rules for declarations. As there is an investigation ongoing I will not be commenting further.”
A spokesman for the Tories said: “The Conservative Party is investigating allegations made regarding a member of parliament. This process is rightfully confidential.
“The party takes all allegations seriously and will always investigate any matters put to them.”
Mr Menzies has stepped down as a government trade envoy, and had the whip removed on Wednesday evening.
Losing the whip means Mr Menzies is no longer a member of the Conservative parliamentary party and will sit as an independent MP, rather than a Tory MP, in the House of Commons.
The party’s chief whip Simon Hart is said to have been made aware of the claims in January, when the former campaign manager reported what had happened.
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Sky News understands there has been an investigation ongoing by Conservative Campaign Headquarters (CCHQ) since the allegations were first raised but further information came to light yesterday and Mr Hart acted immediately.
A spokesperson for the chief whip said: “Following a call with the chief whip, Mark Menzies has agreed to relinquish the Conservative whip, pending the outcome of an investigation.”
A spokesperson for Lancashire Police said: “We are aware of reports in the media relating to a serving Member of Parliament. No complaint has been made to the police at this stage.
“We will make contact with those impacted in due course to see whether they wish to make a complaint.”
Polls are to open for the local elections across the country, with the added extra of a by-election on the same day.
Over 2,600 council seats are up for grabs across 107 councils in England, along with 10 mayoralties in major cities and combined authorities, and 25 London Assembly seats.
A total of 37 police and crime commissioners will also be decided at ballot boxes in England and Wales.
And a new MP will be chosen for the seat of Blackpool South in a by-election.
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U.S. prosecutors are reportedly investigating the fintech firm after a whistleblower claimed it processed thousands of transactions for users from sanctioned countries and terrorist groups.
John Swinney is expected to declare his bid to become the new leader of the SNP later today, Sky News understands.
It comes after Humza Yousaf announced he was standing down as SNP leader and Scotland’s first minister following his decision last week to cut power-sharing ties with the Scottish Greens – a move which saw his leadership collapse.
Mr Swinney previously served as SNP leader between 2000 and 2004; later becoming Nicola Sturgeon’s number two from 2014 to 2023.
He is considered a front-runner for the top job once again, having garnered support from senior figures within his party, including from the SNP’s Westminster leader, Stephen Flynn.
The Perthshire North MSP is expected to make a statement in Edinburgh on Thursday morning.
However, he could face competition from the party’s former finance minister Kate Forbes, who narrowly lost out to Mr Yousaf in last year’s leadership election.
Though the Skye, Lochaber, and Badenoch MSP has not confirmed her intention to enter the leadership contest, she has so far refused to rule herself out of the race.
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“I am still considering all the options, but I also know that there is a lot of support for me across the country and across the party, and last year proved that,” she told Sky News on Tuesday.
It comes after the outgoing first minister, Mr Yousaf, was forced to resign following the breakdown of the Bute House Agreement.
Within hours of the power-sharing deal coming to an end, Mr Yousaf faced the threat of a no confidence vote in himself, and later from one in the Scottish government.
Mr Yousaf stepped down as Scotland’s first minister just after midday on Monday, saying he was “not willing to treat my values and principles or do deals with whomever simply for retaining power”.
He said he would remain in post until a replacement first minister was chosen.