A spokesman for the Ministry of Defence (MoD) said: "We can confirm that a senior civil servant has been suspended on full pay. It would be inappropriate to comment further pending the outcome of an investigation."
While the investigation proceeds, Manley has been temporarily replaced by Mark Hutchinson, the chief operating officer of the DIO.
In a letter to staff, seen by The Guardian newspaper, Hutchinson said: “It would clearly be inappropriate to speculate over the nature of the allegations that led to Andrew's suspension, or to make any further comment on the course of the ongoing investigation. I would ask all of you to respect this position and refrain from participating in or encouraging such speculation/comment as you go about your work."
The value of Manley’s claim was revealed through Freedom of Information requests by the Sunday People newspaper, which investigated the £180m spent by the MoD on staff expenses over four years, and by a Parliamentary Question.
His claims included a £5,542 bill for 47 nights at the New Hall Hotel and Spa in Sutton Coldfield, which was part of a claim for £13,743.
He has been leading the programme to reform the DIO, one of the MOD's key organisational reform programmes.
See also: CSW's interview with Manley