Controversy surrounds BDO's MG Rover report

Controversy continued to rage yesterday over the report into MG Rover by BDO Stoy Hayward after it was passed to the Serious Fraud Office for review.

A spokesman for the Pheonix Four Rover directors said the involvement of the SFO was ‘mystifying’ saying that previous investigations had concluded there was no wrongdoing.

‘Both the National Audit Office and the MG Rover administrators, PWC, carried out thorough investigations into the company’s affairs and concluded there was no evidence whatsoever of any wrongdoing.

‘Lawyers advising the directors who have sat through all of the interviews and read every scrap of evidence have confirmed there has never been any suggestion of fraud during the investigation. At all times, the directors have willingly and openly accounted for their actions.

‘The government is not even saying there will be an SFO investigation but rather whether the SFO think there are grounds for one. People will inevitably wonder why, after four years of investigation costing the taxpayers’ £16 million, we are now facing another protracted period of investigation. Quite understandably, people are asking why the government don’t want to see this report published,’ said a statement from the Rover directors.

Meanwhile government ministers denied that the BDO report had been passed to the SFO, and held back from publication, so that potentially embarrassing parts of the report could remain under wraps.

Lord Mandelson said he had an ‘obligation’ to pass on the report, according to the Financial Times.

The SFO has set up a team of four experts to consider the BDO report. They are expected to make recommendation on whether a formal investigation should be launched.