The Serious Fraud Office has today confirmed reports that it is investigating DataSouth Finance Limited (DFL), part of the DataSouth Group that provides IT business services in Christchurch.

Serious Fraud Office director, Adam Feeley, said the SFO received information that raised concerns as to the veracity of lease agreements allegedly entered into between DFL and clients.

The lease agreements had been financed by South Canterbury Finance.

"The investigation is in its preliminary stages, and we will be working with the receivers and other parties to determine the existence and extent of any fraud."