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A retired spy has told how Special Branch repeatedly intervened to get him off the hook over a 30-year period.

Smith, the former Rochdale MP, died in September 2010. He has since been accused of a raft of claims that he sexually abused boys in care.

Last week the BBC’s Newsnight programme reported how Smith and other prominent figures were arrested at a paedophile party in London in 1981 but were released without charge.

Our source, a former intelligence expert who wishes to remain anonymous, worked for both Special Branch and MI5.

He is ready to tell everything if he is granted immunity from prosecution.

The insider, who is in his 70s, fears losing his pension or being prosecuted under the Official Secrets Act if he speaks out.

The former spy told us Smith considered himself “untouchable” and had a Special Branch minder.

He also revealed: “Smith was given an emergency ‘helpline’ number.

“The irony was that his minder also handed details to Box 500 (MI5), who wanted to know what was happening within the corridors of power.

"They had a hold over him and thought he was potentially more useful as their pet ‘spy’.

“Smith was loathed by all. We knew he was a paedophile and our man was kept very busy at times suppressing claims of abuse.

“I know of at least seven occasions when he was either arrested or questioned – or both – over very serious sexual matters involving children.

“They were all covered up, with police instructed to destroy all records.”

Similar claims were made by Jack Tasker, a former Lancashire detective who investigated Smith over allegations of sexual abuse against eight boys.

The Daily Star Sunday – which has led the way in exposing Smith’s vile past – told 83-year-old Mr Tasker’s story in December.

He said: “Smith was a big, bombastic bully who had a network of people protecting him. I believe he was a supplier of boys as well as being a paedophile.

“He administered corrective justice – spanking naked boys. But when we were ready to prosecute we were ordered to hand over files and forget about it or risk being sacked or returned to uniform.”

Mr Tasker’s 1969 investigation was one of several into Smith’s activities from 1959 onwards. His files ended up in a Special Branch safe in Blackburn.

Tony Robinson, a former Special Branch officer, claimed he found Smith’s prosecution files hidden at his headquarters.

He said: “It was a prosecution-ready file and was put there to deliberately hide it – what other reason could there be?”

Mr Robinson maintained he had the file for four years before his boss was ordered to hand it over to MI5 in London.