News

MG Rover report due; fraud probe dropped

  • Four-year inquiry into collapse
  • No fraud investigation
  • Report goes public in September
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What really happened to MG Rover? We'll know more when the report into the collapse is published on September 11.

We do know there'll be no criminal investigation, though. The Department for Business, Innovation and Skills announced the date of the report, after the Serious Fraud Office (SFO) today confirmed that it wouldn't be launching a probe into the sale of MG Rover in 2000.

'Important to have clarity'
Business secretary Lord Mandelson said: 'It was important to have clarity on whether or not this was a case that the SFO should investigate. The workers who lost their jobs and the creditors who were owed nearly 1.3 billion by the collapse deserved no less.

'They've waited a long time to see the findings of the report and the way is now clear for us to publish. Today we are setting out the timetable and arrangements.'

Independent inspectors investigated the affairs of MG Rover Group (MGRG), its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited and 32 related companies between the purchase of MGRG from BMW in May 2000 and the date of it entering administration in April 2005.

They were appointed in 2005 under Section 432 of the Companies Act by then Trade and Industry secretary Alan Johnson.

The inspectors delivered their report to the Department for Business on June 11, 2009, but publication was delayed to avoid prejudicing any subsequent prosecution.