BusinessBusiness RecoveryPAC to probe PwC Rover fees

PAC to probe PwC Rover fees

Accounts committee expresses unease about £6.5m loan, of which £1.2m went to administrators

The Public Accounts committee is to look further into PwC’s fees in relation
to the demise of MG Rover, it emerged yesterday.

At a meeting yesterday with DTI officials in charge of advising on loans made
to Rover at the time of its collapse, MPs asked for further information on the
costs of administrators in such circumstances.

Richard Bacon, Conservative MP for South Norfolk, wanted to know more in
particular about the provision of the £6.5m loan that kept Rover open for a
further week after it had gone into administration.

Administrators PwC was paid £1.2m of that money, the National Audit Office
report into the car company said recently.

Catherine Bell, acting permanent secretary at the Department of Trade and
Industry at the time, told MPs: ‘That was negotiated as their professional fees
in that situation. We have no reason to think that is out of line with payments
made in other circumstances.’

MPs expressed unease about the £6.5m loan, criticised by the NAO. ‘What was
it doing other than letting people feel better for a few days,’ asked Bacon.

Bell said that PwC had ‘welcomed the loan,’ to which Bacon replied: ‘They
would, wouldn’t they?’

The DTI promised to provide some information as to administrators’ fees in
such circumstances.

Bell also said at the meeting that she would not have approved a larger loan,
of £110m, had ministers requested it.

Current permanent secretary at the DTI, Sir Brian Bender, also said that he
hoped the investigators’ report into the company would be out this calendar
year.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor