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The Government bungled a golden opportunity to cash in on ­£150million of sunken treasure – turning it into a £9million loss.

The huge haul of silver bullion was found in a freighter torpedoed during the Second World War with the loss of 85 lives.

Tons of the cargo were recovered, but ministers still managed to end up down on the deal. The Department for Transport received £6million from a US firm employed to salvage the wreck.

But it paid another £15million in an out-of-court settlement to a second company which complained about how the contract was awarded.

The DfT has reviewed its procurement process and considered disciplinary action against officials.

(Image: Courtesy of Wikipedia)

(Image: Odyssey Marine Exploration)

Transport minister John Hayes said the settlement had arisen after “one unsuccessful bidder made a claim concerning the procurement”.

Labour’s Kevan Jones, who is demanding an investigation, said: “This was meant to be payday for the taxpayer but it was incompetently handled, with £9million wasted.”

The ship, the 7,000-ton Gairsoppa, was carrying silver bars from India to Britain when she was sunk in 1941.

She had left an escorted Navy convoy because she was low on fuel when a German U-boat sent her to the bottom in 15,400ft of water, 300 miles south west of Ireland.

The wreck was found in 2011 and a deal was struck with Odyssey Marine Exploration. It was agreed the firm would keep 80 per cent of the silver it raised and give the Treasury the rest.

Some 48 tons were brought up and the Royal Mint made 20,000 commemorative 50ps with some of the silver.