From the archives: The rise and fall of John Stonehouse

One of the joys of digging through the Guardian and Observer digital archive on a regular basis is in rediscovering the big stories of the day, which have sometimes been forgotten. Twenty five years ago this month, the Guardian published an obituary of John Stonehouse, the former Labour MP who, as the headline has it, managed to die twice. Going back to the newspaper reports that covered his disappearance in the 1970s reveals a story of deception and a fall from grace that manages to surpass Chris Huhne.

John Stonehouse became an MP in the 1950s, and had always been full of ambition. He was the last holder of the post of Postmaster General and oversaw the introduction of second class stamps in 1968. But all of his ambition appeared to come to an abrupt end when he was reported missing, presumed drowned, off the coast of Miami in November 1974.

In the UK, questions were being raised over the MP's mysterious disappearance. His friend William Molloy claimed that the mafia were probably involved. A former Czech intelligence officer, Josef Frolik, had apparently made claims that Stonehouse was a Czech spy in the 1960s - rumours that led to the prime minister, Harold Wilson, denying the allegations in the House of Commons.

Astonishingly, it would later turn out that these claims were, in fact, true - although it would not be confirmed until 2010, when National Archive papers were released - although they were probably not the reason for Stonehouse's disappearance. Attention at the time turned to Stonehouse's financial affairs, particularly when stories began to emerge of inconsistencies in the accounts of a charity he was involved in.

John Stonehouse was found alive in Australia on Christmas Eve in 1974, where he had fled with his secretary, hoping to make a new life under the name of a deceased former constituent. Yet it still took over six months for him to return to the UK, where he faced charges of fraud, theft and forgery.

Upon his return, Stonehouse was remanded in Brixton Prison, yet he did not resign his post as MP. After being released on bail, he made an extraordinary appearance in the House of Commons in October 1975, explaining what he called his "bizarre conduct and psychiatric suicide." He conducted his own defence at his trial and was convicted and imprisoned for seven years, finally resigning as MP. Stonehouse's downfall would have ramifications beyond his own life - his resignation in 1976 came at a time of a minority Labour government, and his Walsall seat was consequently won by a Conservative. In 1977, the Labour government would be forced into a pact with the Liberal Party.

In the report above, Nikki Knewstub examined the extraordinary story of Stonehouse's rise and fall - yet as shocking as the story is, there also seems something oddly familiar about the story of a man faking his own death by leaving his clothes on a beach. This is probably due to an entirely coincidental quirk of timing - Stonehouse's troubles were taking place at the same time as The Fall and Rise of Reginald Perrin was being shown on television.