Government investment arm faces NAO probe

CDC, formerly the Commonwealth Development Corporation, invests in poor countries. It was split into independent parts earlier this year - CDC, a state-owned investment company and Actis, a privatised fund manager.

According to the Sunday Telegraph, the NAO is examining why ministers failed to run a competitive auction for Actis, despite receiving an expression of interest from an Amercian investor.

Sir John Bourn, auditor general, will meet Gregory Barker, Conservative MP for Bexhill and Battle to discuss the issue this week.