SFO to probe Robinson firm

The Serious Fraud Office is to launch an investigation into the collapse of Transtec, the engineering company founded by former paymaster-general and Labour MP Geoffrey Robinson. The news will again turn the spotlight on the controversial politician who was forced from office when details of a loan to Peter Mandelson, the then Trade and Industry Secretary, were revealed.

The SFO probe is expected to focus on an $18m (£11.4m) claim against Transtec made by motor giant Ford in April 1997. An interim report by Department of Trade and Industry investigators published in 2001 said that the claim had not been revealed to shareholders, the Stock Exchange or non-executive directors.

Less than a month after Transtec received the claim, Mr Robinson resigned as a non-executive chairman to become a government minister. Trans- tec went into administrative receivership in December 1999. DTI inspectors have now finished their report, which was passed to Trade and Industry Secretary Patricia Hewitt earlier this month.

The Independent on Sunday has learnt that the SFO was also sent a copy. As Mr Robinson was a non-executive at the time of the Ford claim, it is believed that he will not feature in the SFO probe. A DTI spokesman confirmed that it had received the report and would, eventually, publish it. The SFO refused to comment.

The DTI report is expected to name those responsible for the Transtec accounting irregularities. On top of the Ford claim, the report will shed light on a £400,000 payment to Rover, which was supposed to secure a contract with the car maker, then owned by BMW.

But in the interim report, DTI inspectors said that no contract existed.