It follows a critical PAC report on the affair in 1998 after the TDC disposed of land below regeneration value, concluded transactions representing poor value for money, and conducted business outside terms of reference.
The committee said the TDC entered into leases at above market rates for periods well beyond the expected life of the body, and the former chief executive disregarded guidance and granted a mortgage even though making loans was not allowed.
And the committee complained the Office of Deputy Prime Minister ignored warning signals from the corporation’s auditors and others about what was going wrong.
The Office admitted: ‘In the case of Teesside Development Corporation there were a number of areas where better oversight could have prevented many of these incidents occurring.’
It accepted the PAC’s conclusions, including better training on financial matters for quango board members, and a rap over the knuckles for government officials for not intervening earlier enough.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland
Stephen Grayson to join the audit department in Manchester