Nick Angier, Labour MP for Carmarthen West and South Pembrokeshire, said the probe should look into a contract dispute between American-owned Raytheon Engineers & Constructors and Ledwood Construction. Power station specialist Ledwood slipped into administrative receivership with debts in excess of £9m last week.
The dispute arose from a £480m contract to build the Damhead Creek gas power station in Kent. Work is understood to be continuing on the project, which is to build a 800 MW gas-fired plant.
A Raytheon spokesperson confirmed that the firm was involved in legal action with Ledwood over Damhead Creek, but declined to comment further.
Ernst & Young was forced to lay off 18 of Ledwood's 136 staff last week after a separate client withdrew a contract on news that the company had gone into receivership. However, it is understood that the receiver has been contacted by four parties with a view to buy Ledwood as a going concern.
Angier said he was confident about the firm's future. He said: "I am hopeful that Ledwoods will be able to come out of this receivership, as they have other ongoing contracts and an excellent workforce, well able to compete in the construction market.
"But this uncertainty will cause unnecessary stress for the staff and their families and I will be working to try to ensure that the company and the workforce come out of the setback intact and that their creditors also received what they owed."
Trevor Frid, joint receiver at Ernst & Young, said Ledwood owed in excess of £2m to bankers, more than £4m to the Crown and more than £3m to creditors, sparking fears of a domino effect on its suppliers.
Raytheon, which is owned by construction and engineering giant the Washington Group, has a turnover of £1.5bn and 22 000 staff worldwide. Washington, formerly called Morrison Knudsen, bought Raytheon in July for £623m.
Angier said that he, first minister Rhodri Morgan and Welsh secretary Paul Murphy had all tried to make contact with Raytheon over the last few week, without any success.
Ledwood managing director Willie McLean this week refused to comment.
