A spending watchdog is investigating plans to move a military base from Shropshire to Bristol at the cost of 468 jobs.
The inquiry has been prompted by the discovery that the Ministry of Defence has already bought office space in Bristol - while consultations on the proposed move are still taking place.
Defence Minister Adam Ingram insisted no decision has been made, and told the House of Commons the property would be sold again if the relocation did not take place.
Furious West Midlands MPs have complained to Auditor General Sir John Bourn, head of the National Audit Office, and he confirmed he is to investigate.
The Defence Logistics Organisation (DLO) base in Telford is under threat as part of cost-cutting plans to centralise the entire DLO in Bristol.
In a heated Commons debate, MP Mark Pritchard (Con The Wrekin) said: "It is absolutely wrong, at a ministerial or official level, that a lease should be signed on a building before the end of the consultation period after which people might be moved from Telford to Bristol."
He asked: "How can the consultation process be open and transparent for Defence Logistics Organisation workers in Telford when the deal has been signed already down in Bristol?"
David Wright (Lab Telford) added: "My concern is that if we co-locate activity in the Bristol-Bath area, we will lose essential skills that we have built up through the DLO Telford teams."
He added: "On 21 December last year, the Minister wrote to me to confirm the purchase of that property, which was not a nice Christmas present for staff in Telford."
Mr Ingram insisted no final decision has been taken on the move despite the office purchase.
He said: "Of course, if the collocation does not proceed, we will release that space back to the market. If we wait or do otherwise, the office space to meet our needs might not be available.
"We have not reached a conclusion on the consultation, far from it, and we hold rigidly to that position."
The 13-acre Bristol site was purchased ion December. A spokesman for the National Audit Office said: "We are investigating the processes undergone by the DLO in deciding to purchase property in Bristol."
The Government was already under fire for "going through the motions" in a consultation over a new merged ambulance trust.
The NHS Appointments Commission has placed national advertisements for ten chairman of a regional West Midlands service even though public consultation over the proposed mergers ends next month.
The latest row follows a series of job losses at MoD bases in the Midlands.
An Army Base Repair Organisation facility in Donnington, Telford, Shropshire, is to go with the loss of 628 staff.
About 300 jobs have been lost and about 200 more are threatened due to the end of storage and distribution operations at RAF Stafford.
The Army Medals Office at Droitwich, Worcestershire, was closed after 59 years and moved to Gloucestershire.
And business leaders have warned about 1,200 jobs will be lost if the Ministry of Defence awards a multi-billion pound training contract to Wales instead of RAF Cosford, between Telford and Wolverhampton.