Fraud inquiry at DAF Finance

A FORMER senior employee of Leyland DAF Finance, the hire- purchase and lease-financing arm of the Anglo-Dutch truck maker, is under investigation by the police over fraud allegations.

The employee, a former member of the company's sales team, is understood to have been interviewed by officers examining finance contracts.

Hans Meyer, a Dutch consultant drafted in to run Leyland DAF Finance five weeks ago, said yesterday: 'This is still under investigation. The police are after a former employee who left the company more than a year ago.'

He said he had begun an audit to see if there were irregularities. 'So far we have found no evidence of fraud.'

Leyland DAF Finance's portfolio stands at pounds 600m. It finances hire purchase of trucks and vans by customers, vehicles held in store by dealers and lease contracts.

The company is part of DAF Finance of the Netherlands, not Leyland DAF, the UK arm of the group that went into receivership last month. Leyland DAF Finance is not in receivership.

Leyland DAF dealers have hit out at a pounds 250,000 advertising campaign, paid for by Leyland DAF Finance, which attacks the Government's handling of the truck company's crisis.

Posters and press adverts call for support in saving jobs at the company. Slogans include 'If anyone cares about DAF, then I'm a Dutchman.'

The Leyland DAF Dealers Association said the campaign was 'misplaced and untimely'.