PwC has been appointed by defence giant EADS to conduct a parallel investigation to the Serious Fraud Office (SFO) probe into allegations of bribery at its subsidiary GPT Special Projects.

While the PwC team will look at the GPT accounts and audits, the decision to appoint the firm is being questioned as the accountant had previously worked on the GPT accounts through Coopers & Lybrand.

A major element of its work, The Telegraph reports, will be probing records prepared by the company and audited by a string of accountancy firms such as Coopers & Lybrand until 1998, then Deloitte and latterly KPMG. Both EADS and PwC declined to comment.

The SFO is looking into allegations GPT paid bribes to secure and retain a Saudi military communications project.

Fears have been expressed that the SFO probe threatens to unhinge the £2bn Sangcom project as well as wider ties between the UK and Saudi Arabia.

A similar investigation in 2006 into allegations of bribery by BAE in connection with the Al-Yammah arms deal, were dropped.