Nick Bourne has demanded loyalty from Tories

He had already resigned as party leader in order to defend the claims, making way for Nick Bourne, and has been an independent Conservative since his expulsion.

Mr Richards said he was "disappointed" with the decision - he is to write to the panel to seek an explanation.

Mr Bourne said his membership of the Tory's assembly group would be reviewed by Conservative leader Iain Duncan Smith and chairman David Davies in the New Year.

Dubbed the "Rottweiler" by political commentators, Mr Richards currently represents the North Wales regional constituency.

Pleas turned down

He had hoped to go head-to-head with fuel protestor and farmer Brynle Williams in the Clwyd West seat.

But, after a 90-minute interview designed to vet suitable candidates, the party declined to rubber-stamp his candidature.

It means the party does not believe he not suitable for the seat - he has not yet decided whether to appeal the verdict.

He had already been refused a possible Westminster seat, representing an English constituency, by Conservative Central Office.

The issue of Rod Richards' position within the Welsh Conservative group in the National Assembly has not been affected

Nick Bourne, Conservative assembly leader

A tenacious political fighter and once a Welsh Office minister, Mr Richards last year fought off a bankruptcy petition as was reported to the party's ethics and integrity committee following the allegations against him.

Upon being kicked out of the group, he accused his former colleagues of "malevolence" and has maintained a frosty relationship since.

Nick Bourne said on Thursday: "The issue of Rod Richards' position within the Welsh Conservative group in the National Assembly has not been affected by today's developments.

"The group will make a final decision in relation to this matter in the New Year."

However, it could now be an uphill struggle for Richards to return to the political limelight.

Meanwhile, Paul Valerio, who chaired the interview panel, denied Mr Bourne had leaned on him to deny Mr Richards selection.