SFO to investigate MG Rover collapse

6 July 2009

The Serious Fraud Office (SFO) is to conduct an investigation into the failure of car manufacturer MG Rover.

Business secretary Lord Mandelson is to confirm the move today and the government is to delay publishing the results of its four-year investigation into the demise of the Birmingham-based business in 2005.

MG Rover's executives at the time have described the need for an investigation as "ridiculous", telling the BBC that there was "no suggestion of improper conduct".

Around 6,000 jobs were lost following the collapse of the car manufacturer, which had debts of more than $1.62 billion when it went under in April 2005.

The decision to hold an investigation was met with approval by Vince Cable of the Liberal Democrats, who stated: "I welcome the introduction of the fraud squad into what appears to be a major corporate scandal."

Last month the SFO announced that it has recruited Josh Ellis, formerly of PricewaterhouseCoopers, as its new chief information officer.

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