by Graham Tutthill

A criminal investigation has begun in France over allegations of fraud on board SeaFrance cross-Channel ferries.

Reports in the French media suggest that a prosecutor of Boulogne has launched the investigation for "breach of trust" following a complaint from the ferry company itself.

It is understood that an auditor has discovered mistakes, gaps and inconsistencies in the accounts in late 2009. The amount of money involved is said to be "significant", but no other details have been released.

According to Le Parisien newspaper, it could be "hundreds of thousands of euros".

The fraud could be concerned with the sale, or return, of items from shops on board the ferries, such as cigarettes, perfume and whisky.

The investigation will also look at the amount of stock on board the ferries, and how it is recorded.

SeaFrance managing director Robin Wilkins told the Mercury: "The company’s auditors highlighted discrepancies which led us to believe that significant fraud may have occurred.

"The company’s board has accordingly requested a formal investigation of the matter."

It comes at a time when the future of the company has been placed in the hands of a commercial court in France.

Court protection has been granted for the company which runs until September 15, enabling the ferry operator to remain in business and offset the risk of running out of operating capital. The state-owned SNCF, which owns the company, had put £60 million cash support into SeaFrance, but that was due to run out by the end of May.

It was five days of strike action last month by French unions that triggered the company’s move to court protection. The strikes, over the busy Easter period, are estimated to have cost the company £1.7 million.

The cost to the company’s reputation was thought to be far greater.

Two judicial administrators have been appointed to work with SeaFrance in drawing up a new rescue plan.

Mr Wilkins said: "SeaFrance continues to trade normally, but it will require a capital reconstruction.

"To achieve that it has sought Chapter 11 protection from the Tribunal de Commerce whilst it develops a revised recovery plan."