The former boss of TransTec has been expelled from the accountancy profession for his role in the collapse of the bankrupt motor parts business founded by Geoffrey Robinson, the Labour MP.

Richard Carr, TransTec's chief executive, was given a lifetime ban from the Institute of Chartered Accountants in England and Wales for misconduct of “a serious and sustained nature”.

Richard Parkin, his former finance director, was severely reprimanded for a “serious dereliction of duty” after an investigation by the Joint Disciplinary Tribunal, the accountancy profession's watchdog.

The two executives are the latest in a line of individuals and institutions to have been publicly censured for conduct connected to TransTec's collapse. PricewaterhouseCoopers, TransTec's former auditor, was fined £1.5 million in 2006 for “deficient” audit work while Mr Carr and seven other TransTec executives were banned from acting as company directors for a total of 42 years.

TransTec went into liquidation in December 1999 after it emerged that the company had agreed to pay £11 million in compensation to Ford, its biggest customer, over a contract dispute.

Bill Jeffrey, another former finance director, received a suspended prison sentence in 2006 after pleading guilty to fraud offences relating to his role in covering up the £11 million payment. Mr Carr was charged but subsequently acquitted of seven fraud charges in the same investigation.

Mr Robinson, MP for Coventry North West, was chairman and chief executive of TransTec until handing over to Mr Carr in 1997 when Labour won the general election. He retained a 16 per cent stake in the specialist engineering business and lost about £30million when it collapsed.

TransTec's collapse prompted an investigation by the then Department of Trade and Industry that severely criticised senior staff, calling the board passive and dysfunctional.

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