Self-satisfied: Downing street communications chief Craig Oliver. But does he have any reason to look so pleased with himself?

Is Downing Street director of communications Craig Oliver a liar, or incompetent? Or is he an incompetent liar?

These are the questions we should ask after he denied threatening the Daily Telegraph with tougher press regulation if it published details of its investigation into Maria Miller’s expenses.

The Telegraph reported that Miller’s parents were living in her taxpayer-funded south London second home, implying that she had fraudulently claimed expenses for it, in December 2012 – and immediately followed its report with another, alleging that government advisers tried to bully the paper out of running the story.

The Telegraph claimed that Miller’s special advisor, Joanna Hindley, told a reporter that the Editor of the Telegraph was involved in meetings with the Prime Minister and the Culture Secretary over implementing the recommendations made by Lord Justice Leveson, and that the reporter should discuss the issue with “people a little higher up your organisation”.

The report continued: “Miss Hindley immediately contacted the Telegraph’s head of public affairs to raise concerns about the story. The news group decided to delay publication in order to ensure the facts were correct.

“Having carried out further checks, the newspaper concluded that the story was accurate and decided to publish the article at the first opportunity, meaning it appeared on the day same-sex marriage was debated in the Commons.” The government then suggested that the Telegraph was using the story to “overshadow” the announcement.

“Miss Hindley also accused the Telegraph of harassing Mrs Miller’s father, John Lewis,” the story continued

“In fact, reporters had a brief conversation with Mr Lewis in order to establish how long he had lived with Mrs Miller. Over the course of the conversation, Mr Lewis said he enjoyed reading the Telegraph.”

These claims are clearly damaging to Miss Hindley’s reputation as she is shown to be threatening, on Miller’s behalf, to use government powers to clamp down on reports in the Telegraph, which would be an abuse of the system.

Today’s report on the BBC News website has former Telegraph editor Tony Gallagher claiming that Mr Oliver contacted him to “lean” on the newspaper and “prevent it going about its legitimate business”.

He said: “She has done the free press a great favour,” he said.

“Maria Miller provides a cast-iron example of why politicians should have no power over the press.”

Mr Oliver denied the claim that the Telegraph was threatened. But the question remains: If this is true, why did he not take appropriate action sooner?

If he is right in his claim, then the government could have sued the Telegraph for libelling not only Miss Hindley, but also Mr Oliver andMiller herself. Why didn’t he?

The Telegraph provided its own version of events immediately after they took place, but Mr Oliver has waited 16 months to offer us his side of the story. It’s too late now.

We can only conclude that he is either lying about what happened, incompetent in not having taken the appropriate action at the appropriate time, or an incompetent liar because – given then evidence available to us – it was those acting for the government who misbehaved.

And the bullying, possibly blackmailing fraudster is still in her job. Why?

Follow me on Twitter: @MidWalesMike

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