This has been, for me, really hard to follow. It seemed inevitable that he would have to resign but the exact nature of his alleged misdeeds seem to be unclear.
Here is how I understand it. He took this friend of his, Werritty, on official government business trips. Werritty was referred to as a special advisor to Liam Fox but was not on the government payroll and was instead being paid by 'backers of Mr Fox'. Both Mr Fox and Werritty seemed to be concentrating a lot of time on Sri Lanka, with suspicions of financial benefits to Werritty?
I didn't follow it at first and am now finding the story very inaccessible..