Inquiry over collapse of British Marquee MG Rovers
Trade secretary Alan Johnson has announced appointment of independent inspectors with extraordinary powers to look into the collapse of the Auto Company MG Rovers. He also promised that the results of the finding would be published completely for public scrutiny. This is a first time in around 5 years that an inspector-led Department of Trade and Industry investigation would be investigating company affairs.
This also is a first that the government has indicated that they have a feeling that some serious misconduct took place leading to the demise of the famous auto brand. Johnson also revealed that the decision to set the enquiry was taken after he received a confidential report from accounting watchdog the Financial Reporting Review Panel last week.
The panel does not have the power to question the representatives of the company or request any special documents. Hence, they would be examining the published account records of the company available until the year 2003. Alan Johnson said about these new developments: “People want to know what happened. The public interest requires that the issues raised by the FRRP and developments after 2003 when the last accounts were published be investigated by independent investigators.”
In April this year, MG Rovers collapsed with debts of Â£1.4bn, leaving about 5,000 employees out of work.