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Fraud office probe MG Rover demise
06.07.09
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The Serious Fraud Office (SFO) has been asked to investigate the collapse of MG Rover after a four-year probe into the Midlands car maker's collapse.
Business Secretary Lord Mandelson said in a written statement to Parliament that the SFO had been called on to "consider whether there should be a criminal investigation" following the recent long-awaited results of the Rover report.
The Birmingham-based firm collapsed in 2005, which led to the loss of 6,000 jobs at the car maker and many more at affected suppliers and dealers.
The Department for Business, Innovation and Skills said the publication of the independent inspectors' report into MG Rover would be delayed further "to ensure any potential prosecution is not prejudiced".
The inquiry cost the taxpayer £16 million and was only delivered on June 11 after four years.
The Government launched an investigation immediately after Rover's collapse to examine what went wrong between Phoenix Ventures acquisition of the firm in 2000 and administrators being brought in.
There has been mounting anger over the cost of the investigation, with repeated calls made for it to be made public.
Lord Mandelson said its position on the report's publication would be reviewed following the outcome of the SFO's probe.
The four executives in charge of MG Rover - the so-called Phoenix Four - were reported on Sunday to have taken out an estimated £40 million from MG Rover in the five years they were in charge. But their spokesman said they received closer to £30 million in the five-year period.
The four - former Rover chairman John Towers, Peter Beale, John Edwards and Nick Stephenson - bought the company from BMW for £10 in 2000.
