Australian motoring body the National Roads & Motorists’ Association (NRMA), which made an ill-advised venture into the car rental market in association with hire organisation, is to be investigated by the Australian Securities and Investments Commission following complaints of an internal cover-up.

Last month, former NRMA director Richard Talbot wrote in a letter to Tony D’Aloisio, the ASIC chairman, that information relating to the unexpected departure of the former Thrifty head John Walker in 2008 was not disclosed to board members.

Talbot also accused the NRMA of attempting to bury investigation findings into the loss-making collaboration since it bought into the Thrifty partnership. ASIC responded to Mr Talbot last week to confirm it was in the process of investigating the issue, although representatives from the motoring body have advised that they have not been contacted, nor were they aware of any alleged cover-up.

Talbot claimed that the two, million NRMA members should be pleased that ASIC was looking into the matter, arguing that membership fees were being used to cover the losses generated by the failing venture. Talbot said that over $100 million had been wasted by the NRMA since it first bought into the Thrifty agreement in 2006 – which has been labelled as a gross exaggeration by the group. A leaked report in 2009 did, however, show that Thrifty made a loss of $27.5 million for that financial year.

The NRMA has advised that under new management the Thrifty project is forecast to return a profit this year.