The Department of Transport has reportedly asked the gardaí to investigate allegations of bribery at Bus Éireann.
The allegations emerged last year, when a private bus operator claimed some of his colleagues were making cash payments to Bus Eireann employees to get lucrative contracts.
The claims centre on school runs and other regular business that is contracted out to private firms by Bus Éireann.
The company said it had investigated the allegations and found that they were untrue.
But a solicitor from Galway said yesterday that the garda fraud squad was now examining the matter after receiving a report from the Department of Transport.