National Health Service (NHS) Local Counter Fraud Specialists have been conducting investigations into work done by a company supplying staff to primary health care trusts, The Daily Telegraph newspaper reports.

The Daily Telegraph understands that the probe is focused on work Healthcare Locums Plc (HCL), the specialist health and social care staffing firm, carried out around Hampshire and the south coast.

The NHS operates a network of 400 anti-fraud investigators attached to hospitals and primary health care trusts across the country. The investigators look at a range of potentially fraudulent activity such as double invoicing and overcharging by partner companies in the private sector.

Although The Daily Telegraph understands that Healthcare Locums has been investigated for more than a year, there can be no certainty authorities will take the action further.

In a statement, the company said "Healthcare Locums has not been notified and is not aware of any current investigation in Hampshire and the south coast. We work with almost every NHS trust in the UK and we pride ourselves on our secure and transparent working relationships with all our clients."

"The company has very strong internal controls and systems which are regularly audited by independent bodies. If ever we are made aware of any discrepancy we take immediate action to investigate and rectify if appropriate."

Earlier this week Healthcare Locums announced that the ordinary shares of the company have been suspended from trading on AIM with immediate effect because "the board has strong reasons to believe that the financial performance of HCL for the year to 31 December 2010 will be materially below market expectations."

"Serious accounting irregularities have been brought to the attention of the board as a result of which the company will be carrying out an immediate investigation to consider the financial implications."

The company also announced that both Executive Vice-Chairman, Kate Bleasdale and Chief Financial Officer, Diane Jarvis have been suspended pending the outcome of the investigation.