Geoffrey Robinson facing police scrutiny as investigation launched into Transtec affair

Max Ayriss made claims that the grant applications made Robinson’s Transtec group of companies to the Department of Trade and Industry {DTI} had been fraudulent.

He has also said Robinson had instructed him to ‘maximise’ grant applications.

In a statement, the DTI said that following the allegations its officials had interviewed Ayriss about the circumstances surrounding the grant.

The statement continues: ‘In the light of this interview, and following consultation with the West Midland Police, the DTI has handed over to the West Midland Police information relating to grant payments made by the department to subsidiaries of Transtec plc and the information revealed by the departments enquiries into these matters.

‘On the advice of the West Midland police they will now conduct any further interviews which may be necessary and decide what action they intend to take.’

Coventry North West MP Robinson, who denies all wrongdoing, quit as paymaster general in December in 1998 after it was revealed that he had made a £373,000 pound loan to fellow minister Peter Mandelson to buy a house.

Mandelson also resigned from his cabinet post as Trade and Industry Secretary but returned to government last year as Northern Ireland Secretary.

Former paymaster general denies chief accountant’s claims of impropriety at TransTec

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