FRC to investigate Rover
Sticken car company's accounts will be looked into by accounting watchdog.
MG Rover is being investigated by the Financial Reporting Council, which will look into the accounts of the stricken car group, the government confirmed this weekend.
The Financial Reporting Review Panel was tasked by Sir Bryan Nicholson, chairman of the FRC, to delve into MG Rover’s accounts after questions had been raised in the press.
The role of Deloitte, the car group’s auditor, may also come under the spotlight. According to Rover’s accounts, the Big Four firm earned £4.6m in 2002 and 2003 from Rover through audit fees, ‘other services’ and work carried out in connection with the acquisition of ‘Phoenix Venture Leasing 2 Limited’.
A Deloitte statement said: ‘We are comfortable that the opinions we gave relating to the financial statements of MG Rover were the right ones.’
Directors’ remuneration, other benefits and ‘trust contributions’ at MG Rover reached almost £21m over the same two years.