Parliament's top watchdog is being asked to investigate the way the Arts Council for Wales is run following a long-running row over school theatre contracts.

The move follows a decision by a Welsh theatre company to seek legal action over the loss of its contract to provide theatre in eduction in south east Wales.

Gwent theatre has been bringing productions to schools for more than 20 years.

When it lost its contract to a Cardiff-based company, there was uproar from politicians and educationalists alike.

With their backing the company appealed, but it has now been told by the Arts Council that the decision cannot be overturned.

Legal challenge

Gwent Theatre is considering a legal challenge, but MPs - Don Touhig, Huw Edwards and Llew Smith - are calling for the Auditor General to look at the way the body operates.

"We're talking about a considerable amount of public money here and there are so many unanswered questions that I think it needs a top-level investigation," said Mr Edwards, MP for Monmouth.

On Tuesday a 34-strong group of Labour MPs voted unanimously to protest at the Arts Council decision which they believe makes a mockery of the appeals procedure.

But the Chief Executive of the Arts Council, Joanna Weston, said they had been as transparent as possible.

"We've answered all the questions they've raised in as full a way as we possibly can."