THE conduct of failed companies at the centre of a row over "environmental devastation" caused by opencast mines is to come under the scrutiny of insolvency investigators.

The role played by board directors of Scottish Coal and ATH Resources, two of the major mining operators, in the years before the companies became insolvent last year is to be looked at.

A damning review of failures in the restoration of abandoned opencast mines in East Ayrshire, the main problem area in Scotland, highlights the actions of mine operators. The report has been forwarded to the Investigation and Enforcement Section of the Insolvency Service.

Sandra Osborne, MP for Ayr Carrick & Cumnock, who forwarded the report, said: "I want them to consider it with a view to further action, given the apparent culpability alleged in the report."

Across Scotland it is estimated councils are missing £200 million from the funds they need to clean up the mess made by dozens of opencast coal mines because insurance policies intended to pay for restoration work were inadequate.

Jo Swinson, UK Government minister for employment relations and consumer affairs, confirmed in a letter that the Insolvency Service was "monitoring the situation" regarding ATH and other firms in each group, including Scottish Coal, which had become insolvent.

She said the review would consider the extent to which directors complied with statutory obligations.