April 15, 2009

MG Rover probe drags on

A multimillion-dollar British inquiry into the fall of MG Rover is taking almost as long as the period in which Phoenix Partnership owned the automaker.

Phoenix Partnership bought MG Rover from BMW in 2000. In April 2005, the company folded with the loss of about 6,000 jobs, the Financial Times reported.

Four years later the forensic inquiry under the Companies Act of 1985 is still proceeding, having cost taxpayers $22.1 million, the Financial Times said.

BDO Stoy Hayward, the accounting firm handling the investigation, has yet to send draft reports to people likely to be criticized in the final report, which would signal the investigation is coming to a close.

We know they're working hard to complete their inquiries, The Department for Business, Enterprise and Regulatory Reform said this week. But, others were dismayed at the cost of the investigation.

Every penny spent on this long-drawn-out inquiry is money that would much better have been spent developing green technology for Britain's motor manufacturers, Peter Luff, a Conservative who is chairman of Parliament's business select committee, told the Financial Times.