The problem was he wasn't on the government payroll. He was Fox's mate with links to the defence industry, apparently being funded by various wealthy lobbyists, who passed himself off as Fox's advisor and just happened to turn up at Fox's undeclared meetings with foreign military types.
I'm sure there was no actual corruption involved whatsoever, as these seem like very honest chaps. However, some people, terribly suspicious minded people, may get the wrong idea and think they were doing some really shady stuff.
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