SIR Digby Jones, the former Director-General of the CBI, looks likely to be dragged into an investigation into iSoft after the UK’s disciplinary body for accountants said it was looking into the troubled IT group’s recent problems.

The Accountancy Investigation and Discipline Board, part of the Financial Reporting Council, is in the early stages of an investigation that will include interviewing former executive and non-executive directors of the group.

Sir Digby was until last July a non-executive director of iSoft, a key supplier of software to the NHS’s £6.2 billion IT modernisation programme. His departure came just six months before a string of profit warnings and an accounting policy change wiped out about 90 per cent of the group’s stock market value.

The AIDB inquiry comes after an internal investigation over the summer threw up evidence of possible accounting irregularities at iSoft in the 2003-04 and 2004-05 financial years, prompting the Financial Services Authority to launch a formal investigation into the group.

The AIDB will be investigating RSM Robson Rhodes, iSoft’s auditors during that period. Cameron Scott, counsel at the AIDB, said that Sir Digby could be one of several directors interviewed as part of the investigation.

The AIDB lacks the powers to investigate Sir Digby because he is not an accountant. The watchdog will begin its work by reviewing documents before conducting interviews. It expects to complete the investigation by the end of June. Sir Digby told The Times last night: “I welcome the investigation. It’s absolutely right and proper that an investigation takes place.

“If they ask to speak to me I will gladly meet with them and tell them everything I know. I will co-operate because it’s very important that issues such as this are properly investigated.”

Sir Digby, now a senior adviser to Deloitte, said he left iSoft’s audit committee nearly two years ago and had not been a member of the board for more than a year.

He was iSoft’s senior non-executive director but stepped down from the group’s audit committee nearly two years ago.

Companies and individuals are entitled to challenge the AIDB’s findings before an independent tribunal. If the tribunal finds in favour of the AIDB, it can impose an unlimited fine or bar individuals from conducting audits.

David Maxwell, managing partner of Robson Rhodes, said: “The firm will co-operate fully with the AIDB in relation to their inquiries. We wish to emphasise that we are not aware of any allegations against the firm.”

Mr Maxwell declined to comment further, citing the FSA’s current investigation into iSoft.

Tim Whiston, who stepped down as chief executive this year with a £700,000 compensation package, is also likely to come under the AIDB’s scrutiny. He served as finance director between 2000 and 2004.

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