The move is seen as a direct response to suggestions of financial irregularities in the workings of such bodies.

It came 24 hours after a similar inquiry was announced for North Lanarkshire Council, which revealed a £4.5m "black hole" in its DLO budget.

In the wake of that controversy, two more councils - Argyll and Bute and East Dunbartonshire - have reported loses.

Earlier diktat

Mr Dewar told reporters in Glasgow that the Accounts Commission for Scotland will, in July, be asked to investigate the management and financial controls of all DLOs.

It follows an earlier diktat that requires all councils to report to the Scottish Office on the state of their DLO finances.

Mr Dewar confirmed that Labour-controlled East Dunbartonshire and independent Argyll and Bute have both reported deficits.

Dewar 'determined'

But he sought to draw a distinction against North Lanarkshire, saying it was not yet known whether the two latest deficits amounted to unexpected "black holes".

Announcing the investigations, Mr Dewar said: "I am determined to root out mismanagement, incompetence and fraud wherever it is found.

"My department will pursue the investigations vigorously, thoroughly and quickly so we establish the full extent of the problem.

"There are some councils, and always have been, that for a variety of reasons have had controlled shortfalls which they knew about and are in many cases slowly reducing on a controlled and proper basis.

"Like every other case, they will be under investigation and we will have the Accounts Commission in there doing a finance and management audit."