This from the FT, Monday March 15:

Parliament's spending watchdog has begun a probe into Freeview, the BBC's digital television service, in the first of a series of wide- ranging investigations into the way the broadcaster spends the £2.6bn raised each year from the licence fee.

The National Audit Office has just begun looking at the BBC's investment in Freeview, which is also funded by British Sky Broadcasting and Crown Castle, the transmission company. The BBC poured £2m into launching Freeview. Five other areas, including how the broadcaster demonstrates it is fulfilling its public service obligations, have been ear-marked for studies.

This is the first time the corporation's main oper-ations have been examined by an externally appointed auditor. In the past the NAO's remit has been restricted to arrangements for collecting the licence fee and the BBC World Service. MPs and rival broadcasters have put pressure on the government to make the BBC more accountable for the taxpayers' money it receives. The scope of the investigations has surprised Whitehall insiders. The NAO's decision to launch a series of inquiries follows a deal struck last year between the government and the BBC, which previously argued that opening its books would jeopardise its editorial independence.

Freeview was deemed a success for Greg Dyke, for mer director-general, reaching more than 3m homes. But even if the NAO decided the money was well-spent, subsequent inquiries could prove more controversial.

Other reviews will look at the way the BBC shows it is meeting its remit to provide a public service. This could play into the hands of the corporation's opponents who believe taxpayers' money raised through the licence fee should be shared with other broadcasters offering a public service.

The NAO will also investigate the construction of a building in London's White City, overheads, risk management and outsourcing.

The BBC said: "Together the NAO and the governors' audit committee have agreed this programme of work." The board of governors had concurred with the government that "this additional work on value for money would enhance the BBC's accountability to licence fee payers".

Julie Kirkbride, shadow culture secretary, said: "I have long campaigned for the BBC to be subject to proper scrutiny under the NAO."

Gavyn Davies, the former BBC chairman who quit after the Hutton inquiry, bitterly opposed the idea of being scrutinised by the NAO, saying last year that "the direct responsibility of the governors for the probity of the BBC's financial arrangements is at the heart of their powers over the organisation, as set down in the BBC's charter".