But she was concerned that the inspectors should look at all aspects of TransTec's history.

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Mr Robinson said the grants had undergone a thorough review by the DTI as well as by TransTec.

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He said if a claim came below the amount that TransTec could get, "Geoffrey indicated how to maximise it".

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Shadow trade and industry secretary Angela Browning has tabled a series of Commons questions on Transtec to Trade and Industry Secretary Stephen Byers.

BBC: Robinson faces fraud inquiry

On Monday TransTec's former chief accountant, Max Ayriss, told the BBC that a five-figure sum had been involved in several different applications for DTI grants by Mr Robinson's businesses.

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Mr Robinson, whose business affairs have long been the subject of controversy, founded Transtec in the early 1980s but resigned as chairman when he joined the government in 1997.

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For although he made much of his fortune for himself, by founding an engineering firm called TransTec, Mr Robinson's career was forever altered, for both good and ill, by one extraordinary stroke of luck.

ECONOMIST: The