An investigation could be launched by the Serious Fraud Office (SFO) into the collapse of an oil company which had been advised previously by a Tory MP.
Afren got into trouble last year after an executive pay scandal amid the oil price decline.
At the time of going bust, the firm had $1.7billion in debt.
A report filed to Companies House, the administrators for the company said they were working with “UK law enforcement agencies” as they looked into the previous affairs of Afren.
The SFO is said to be collecting information but is yet to decided on whether it will move to a formal investigation.
Prior to the company’s collapse, it had assets in both Nigeria and Kurdistan.
Zahawi has claimed he had “absolutely nothing” to do with any decisions made at Afren.
The Sunday Times also claims Afren paid $588million in cash for the rights to two undeveloped Kurdish oil fields in 2011.
At the time Zahawi & Zahawi, the MP’s consultancy, had been hired as an adviser the following year and worked for the firm until last summer.