Speculation in Britain that the Serious Fraud Office is to investigate a case surrounding the collapse of MG Rover in 2005 has been confirmed today with a British Government enquiry recommending a criminal investigation.
Business Secretary Lord Mandelson will call in the SFO following completion of the enquiry.
The MG Rover Group hit the wall in the midst of massive publicity nearly four years ago, owing creditors nearly £1.3 billion and saw around 6000 employees displace their jobs in addition to 9000 workers at dealers and support industries.
“There has been a wide-reaching and thorough investigation into the events which led to the company failing, workers loss their jobs and creditors not acquirement paid,” reported Lord Mandelson. “The SFO must now see if there are sediment for prosecution.”
Four businessmen – John Towers, Peter Beale, John Edwards and Nick Stephenson – bought MG Rover from BMW for £10 in 2000. It is thought that the SFO investigation will midst on the four paying themselves more than £40 million in salaries and pensions and whether this amounts to illegal asset stripping.
“There has never been any hint of improper conduct by means of the directors and this was confirmed in a report by the administrators six months after they took over the running of the company,” the four business men said in a statement. “Four years on, any hint of another further investigation is frankly ridiculous.â€
The Government report cannot have being published yet for legal reasons.
Source: Drivewire.eu
Source: www.caradvice.com.au
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