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SFO set to probe MG Rover collapse

Published on 6 Jul 2009 under category: legal

The troubles of a major car maker are set to be investigated by the Serious Fraud Office (SFO), it has been revealed.

Insolvency solicitors may remember that MG Rover went into administration four years ago and now the fraud crimes body is looking into the possibly of criminal activity within the business during its demise.

A four-year inquiry into the firm's troubles has already been carried out, with business secretary Lord Mandelson now set to announce the SFO's involvement in an investigation into the company.

Vince Cable, treasury spokesman for the Liberal Democrats, welcomed the move to look into what he said "appears to be a major corporate scandal", however he questioned the news that the report into MG Rover will not be published until after the SFO's study.

He stated: "It must not be used as a smokescreen to hide what the public needs to know about the use of taxpayers' money."

Last week, the SFO launched a probe into an incident involving investment company Keydata.