Ex directors of Rover MG to be declared now unfit

Posted on Monday, 14 September 2009 , 13:09:33 byEmil

Filed under mg-roverexecutivedirectorsunfitindustryMGRover

Ex directors of Rover MG to be declared now unfit

Ex British maker MG Rover Group, having the investigation in collapse, almost finished, private investigators on Friday, with the report published.

'This has been a painstaking enquiry by independent inspectors. It was important to get all the facts into the open so that workers who lost their jobs and creditors who were not paid know the truth' Mandelson affirmed, just-auto.com quoted.

'Action is being taken. Based on this report, work has been commissioned to start legal proceedings to seek to declare relevant directors unfit to hold office and to disqualify them from management of any company in future'.

The accusation were the directors each received, 250,000 pounds yearly as a salary plus 500,000 pounds extra. 5 directors of MG Rover received, in 5 years 42 million pounds.

'During the five year period, the members of the Phoenix Consortium and [chief executive Kevin Howe] obtained large, and we say unreasonably large, financial rewards, totaling tens of millions of pounds. They also undertook a number of transactions to allocate assets to companies in the group other than MGRG and in which MGRG had no interest' the investigators’ says the report.

MG Rover (April 2005 protection), having 1.3 billion pounds total debt. 6,000 employees lost their place of work, while the assets of the firm were sent in the Chinese territory, in the Najing Auto hands.