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According to a report in The Times, Lader said that the company is "taking every step to ensure a thorough investigation".

The comments related to the scandal at WPP's Italian operations that have seen Marco Benatti, the Italian country manager, fired and corporate investigator Kroll hired to look in to the matter.

Kroll's investigation has been widened to include Vittorio Benatti, brother of Marco. Giovanni Boss, chairman of WPP Italy, is also under investigation.

Marco Benatti was fired on January 9 after allegations of fraud. This followed disputes over an earn-out payment owed to him after WPP bought the Italian media agency Mediaclub in 2002, of which Benatti is the major shareholder.

WPP is now suing Benatti for breaching his consultancy agreement with WPP over the earn-out, and is seeking damages of more than £150,000.

Also under investigation is a flat in Milan, for which WPP pays £50,000 a year, even though company employees were not allowed to use it.

Benatti has filed a complaint to Italian police in an attempt to dispel suspicion that he was involved in two alleged break-ins at WPP's Italian offices last month.

At the same time, Lader moved to quash speculation that there were concerns over a succession plan at WPP and the dominance of Sir Martin Sorrell, the chief executive.

"We have a rigorous succession process in which we review a wide variety of successors. The board has routinely given in-depth attention of potential successors for a number of positions at WPP, including that of the chief executive.

"The list always changes, but it is important the board is aware of potential successors," Lader told the Times.

Separately, it emerged on the weekend that Sir Martin Sorrell and Richard Desmond have launched lawsuits against each others' companies relating to the launch of OK! in the US.

WPP is seeking a payment of £5.7m for work done on the launch of the magazine, while Desmond is counter-suing and seeking up to £5.5m from WPP over claims that the group guaranteed ads for the launch.

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