Officials at the NAO have always maintained it was closely monitoring events surrounding the administration of the rail infrastructure company, but now insiders say it is ‘inconceivable’ that an investigation would not be launched.
The news will be a blow to transport secretary Stephen Byers, who has been under constant fire since calling in administrators Ernst & Young in September.
Byres has already faced a cross-examination from the transport select committee but an NAO probe would represent a far more rigorous investigation.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children