Phoenix Four hit back at whitewash - the statement in full

John Towers, John Edwards, Nick Stephenson and Peter Beale, also defended their own pay packets while they were running the doomed firm, insisting it was all "above board".

This is what they said: "The report is entirely as we expected - a witch hunt against us and a whitewash for the government. It drips with the hallmarks of this government - spin, smear and point blank refusal to take any responsibility for their own actions.

"We criticised the government for failing to help MG Rover. As we have seen elsewhere, there is a price to be paid for criticising this government and for us the price is this report.

"The Government has spent £18 million of taxpayers' money on a report - many millions more than they ever gave MG Rover. Not surprisingly, they have got a version of events that suits their interests. There is no explanation for the Longbridge workers why MG Rover collapsed. As we predicted, it has failed them. Our remuneration was not the reason for the collapse. The real reason is the government bungled the last chance to save MG Rover.

"The script for this report had been written before the process started. The Inspectors were not interested in hearing about any of the fundamental business issues, and in virtual denial when it came to discussing the role of government.

"The government also tried to accuse us of fraud by referring the matter to the Serious Fraud Office - a tactic that failed. The latest indications are that Ministers will pursue disqualification proceedings against us, despite the fact that it is very well known that there is no possibility of us ever again considering this sort of role in the UK. It is political grandstanding.

"This report says nothing new about our remuneration - everyone knew what we were paid. It was never a secret. They did not have to spend £18 million to find that out. Our remuneration was all in the company accounts and signed off by Deloitte, one of the world's most respected firms of auditors. It was entirely legal, above board, and much less than similar payments in large car companies.

"Swept aside in this report is the fact that, in April 2000, the padlocks were going on the gates at Longbridge. The mighty BMW was closing the company and thousands of people were staring the dole in the face.

"That didn't happen because, when no one else wanted the job, we were not prepared to let it happen. The team we built succeeded in drastically reducing the company losses where BMW could not. We secured hundreds of millions of pounds of new investment and most importantly, secured employment for a workforce who received almost £1 billion in wages over five years whilst Chancellor Brown banked £450 million in taxes.

"Our greatest regret is that the company could not ultimately be saved. All of us had strong links to the company. Saving MG Rover was why we took the challenge on in the first place, not personal gain. The suggestion that we put personal gain ahead of the interests of MG Rover is utterly offensive and a complete travesty of the truth.

"One point which has been conveniently overlooked in the report, even though it was widely known, was that we agreed to put £10 million of our own funds back into the business to ensure the future of the company.

"We tried our best and to this day we are bitterly disappointed that when the moment came for the government to step up to the plate to help MG Rover, it didn't."