Scandalous Report Exposes MG Rover

Today, a damning report has been released investigating the collapse of car firm MG Rover. It claimed that one of the former directors had attempted to destroy some evidence about the company’s demise, and another one of the directors was having a personal relationship with a consultant who worked for the company. She was reportedly paid £1.6 million by the company.

Since MG Rover’s 2005 collapse, it has taken 4 years to complete the report and has cost the taxpayer £16 million. The 850 page report claims that Peter Beale, one of the ‘Phoenix Four’ who ran the company, gave MPs false information when MG Rover’s demise was being investigated.

Beale bought special computer software which would destroy evidence the day after he received the Government’s announcement that they would be investigating MG Rover’s collapse, which resulted in 6000 jobs lost.

The female consultant Dr Qu Li was hired by Phoenix to explore possible business collaborations, however she embarked on a personal relationship with one of the company directors, Nick Stephenson. Dr Li received over £1.6 million from MG Rover in the 15 months running up to the company’s collapse. Another of the directors confessed that no research was carried out into the market rate of the services that Dr Li offered the company.

The biggest scandal revealed in the report was the amount of money taken by the Chief Executive Kevin Howe, and the Phoenix Four. After buying the company from BMW in 2000 for just £10, the men took more than £42 million in pay and pensions over the 5 years leading up to the company’s closure. As a result of this, lawyers have started to compile evidence in order to bring proceedings against the former MG Rover directors to prevent them from holding any future company office, according to the Business Secretary Lord Mandelson.

When the Phoenix four first took over the company from BMW in 2000, they were seen as saviours who had come to rescue the business. When asked what they thought of the latest findings, they described the report as a “witch hunt” and have denied any wrong doing.

MG Rover was the last British car manufacturer in the motoring industry. Gentlemen would proudly show off their vehicles, riding around with London escorts and beautiful women to complete the look. Now, MG Rover cars will become collectable as they are no longer manufactured.