The UK Government has ordered an independent review of internal financial controls at the Royal Mint following the disclosure that "potentially improper payments" had been made.

An internal investigation was received by the Treasury a week ago, but the Treasury Minister Ruth Kelly has asked for a further examination of a small number of payments made between 1996 to 1999.

The Treasury said the internal investigation raised concerns about the Mint's own internal financial control systems.

It added that the Serious Fraud Office has been informed.

Possible fraud

The internal inquiry was conducted by the new Deputy Master of the Mint, Gerald Sheehan, who was alerted to apparent discrepancies shortly after being appointed last December.

Full details of the improper payments at the Llantrisant, south Wales, organisation have not been given, but it is understood the investigation will look into 10 payments involving thousands rather than millions of pounds.

The independent study will be set up by Mr Sheehan, but it has not yet been decided who will head the review.