News regarding MG/rover
Posté : 31 mai 2005, 21:54
Seen on MSN:
Government launches MG Rover investigation
By Gerard Wynn
LONDON (Reuters) - The Department of Trade and Industry has launched a full investigation into the collapse of carmaker MG Rover after the accounting watchdog unearthed unanswered questions in its books, the DTI said on Tuesday.
MG Rover filed for bankruptcy in April under debts of 1.4 billion pounds, including a 415 million pounds pension hole, compared to assets of 80.5 million pounds.
The investigation aims to satisfy public interest in the bankruptcy, which has cost 5,000 jobs, the Trade and Industry Secretary Alan Johnson said in a statement.
"The appointment of administrators on 8 April was a huge blow to the employees of the company, to their families, to MG Rover's suppliers and the local community," he said. "People want to know what happened."
MG Rover's owners Phoenix Venture Holdings bought the company in 2000 for just 10 pounds from German auto giant BMW <BMWG.DE>, and has since awarded its directors 40 million pounds in salaries and bonuses.
The accounting watchdog, the Financial Reporting Review Panel, reported its review of the carmaker's accounts last week.
"I am grateful to the FRRP for their report on the published accounts of the Rover Group up to 2003," Johnson said. "It raises a number of questions that need to be answered."
The investigation will lead to a published report and has the powers to disqualify directors or lead to civil prosecutions either through the DTI or the police.
The DTI said it would push for a report "as quickly as possible", but the last comparable investigation -- into failed car parts business TransTec in 2003 -- took more than three years.
The TransTec investigation uncovered "lies", "deception" and "fundamental failings", and criticised, without prosecuting, its founder and former Paymaster General Geoffrey Robinson.
The MG Rover investigation will have powers to demand documents and the attendance of witnesses, including directors, officers and agents of the company and will be led by a lawyer and an accountant, Guy Newey QC and Gervase MacGregor.
Government launches MG Rover investigation
By Gerard Wynn
LONDON (Reuters) - The Department of Trade and Industry has launched a full investigation into the collapse of carmaker MG Rover after the accounting watchdog unearthed unanswered questions in its books, the DTI said on Tuesday.
MG Rover filed for bankruptcy in April under debts of 1.4 billion pounds, including a 415 million pounds pension hole, compared to assets of 80.5 million pounds.
The investigation aims to satisfy public interest in the bankruptcy, which has cost 5,000 jobs, the Trade and Industry Secretary Alan Johnson said in a statement.
"The appointment of administrators on 8 April was a huge blow to the employees of the company, to their families, to MG Rover's suppliers and the local community," he said. "People want to know what happened."
MG Rover's owners Phoenix Venture Holdings bought the company in 2000 for just 10 pounds from German auto giant BMW <BMWG.DE>, and has since awarded its directors 40 million pounds in salaries and bonuses.
The accounting watchdog, the Financial Reporting Review Panel, reported its review of the carmaker's accounts last week.
"I am grateful to the FRRP for their report on the published accounts of the Rover Group up to 2003," Johnson said. "It raises a number of questions that need to be answered."
The investigation will lead to a published report and has the powers to disqualify directors or lead to civil prosecutions either through the DTI or the police.
The DTI said it would push for a report "as quickly as possible", but the last comparable investigation -- into failed car parts business TransTec in 2003 -- took more than three years.
The TransTec investigation uncovered "lies", "deception" and "fundamental failings", and criticised, without prosecuting, its founder and former Paymaster General Geoffrey Robinson.
The MG Rover investigation will have powers to demand documents and the attendance of witnesses, including directors, officers and agents of the company and will be led by a lawyer and an accountant, Guy Newey QC and Gervase MacGregor.
