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by Matt Brogan

It has emerged that the former owners of collapsed manufacturer MG-Rover have rounded on the UK Government over apparently refusing financial aid to save the company.

Towers, Edwards, Beale and Stephenson stand accused of asset-stripping MG-Rover to the tune of tens of millions of pounds drawn from the car company in salaries over the five years before it went into receivership.

The four have drawn up a sizeable report also claiming that the Prime Minister at the time Tony Blair, was keen to save MG-Rover, however a £120 million loan to the company was blocked in April 2005 by Gordon Brown, the Chancellor at the time.

The former bosses claim that the company collapsed as a direct result of this action.

All of this follows news that the current Business Secretary, Lord Mandelson intends to hand the case over to the Serious Fraud Office with the intent of initiating a criminal investigation into the asset stripping.

The report seems to directly accuse the Government of wanting to cover up its involvement in the demise of the company saying:

“The Government is doing and will do anything to disguise the role played by senior political figures in the closure of MG Rover.”

It also suggests that MG-Rover was failed at a time when millions of pounds worth of public money was given to “rival foreign manufacturers such as Ford, Nissan, BMW, Vauxhall and Peugeot”.

Allegations that Mr Brown pulled the plug on MG-Rover have already been strenuously denied by the UK Government.

CarAdvice wishes to thank Bob Hume at Drivewire for his continued support with developments on this story.

Source: drivewire.eu




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