SFO confirm it will not launch a criminal probe; full report out on 11 September
11 August 2009

The Serious Fraud Office (SFO) has confirmed there will be no criminal probe into the collapse of MG Rover.

Business Secretary Lord Mandelson asked the SFO to study the results of a four-year independent report into the saga surrounding the 2005 demise of the company, but it has decided that there were no grounds "to initiate a criminal investigation”.

The SFO said that it could not comment about the reasons for its decision because the inspectors' report had not been made public. It will be released on 11 September.

MG Rover went into administration in April 2005 with debts of almost £1.3 billion and the loss of 6000 jobs.

Lord Mandelson defended the decision to refer the matter to the SFO.

"Now the report will be published, the fraud office having made their decision, and people can judge, in the light of that report, everyone's responsibilities," he said.

Four executives, known as the Phoenix Four, took over MG Rover in May 2000 after buying it for £10 from BMW. A spokesman for the directors said they had always maintained there was no basis for a criminal investigation as the question of fraud had never been raised.

They were "flabbergasted" when Lord Mandelson referred the matter to the SFO, he added.

"The decision to refer the matter to the SFO was the latest in a long line of bizarre and wholly unnecessary twists in the MG Rover story," the spokesman said, adding the directors had "very little faith" in the inquiry, and were sceptical whether the department would publish a final report that was "properly balanced and objective".

"The directors and many others with an interest in MG Rover fear that anyone thinking that this inquiry will get to the heart of the matter is in for a disappointment."

Twitter - follow autocar.co.ukSee all the latest MG reviews, news and videoSee all the latest Rover reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Jaguar E-Pace 2018 review hero front
    Car review
    20 April 2018
    Can Jaguar’s compact SUV bring flair and dynamic polish to a fast-growing class?
  • Audi TT RS Coupé
    First Drive
    20 April 2018
    The Audi TT RS has the looks, a vociferous engine and the supercar-baiting performance, but is it too uncompromising to use as a daily driver?
  • Lamborghini Urus review 2018 hero front
    First Drive
    19 April 2018
    The supercar maker's new 4x4 is massively capable wherever it goes, while being extremely conspicuous and costly while it does it
  • Skoda Kodiaq
    First Drive
    19 April 2018
    High-spec seven-seater Kodiaq begins its family life with a lot to prove — for Skoda and SUVs
  • Ford Focus RS Race Red Edition front
    First Drive
    18 April 2018
    Ford drafts in some tasty extras for this limited-run Focus RS swansong edition