Monday July 6, 11:36 AM
British fraud office to probe MG Rover collapse
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LONDON (AFP) - Britain's Serious Fraud Office is to investigate the collapse of carmaker MG Rover in 2005, Business Secretary Peter Mandelson said on Monday.
Mandelson said in a written statement to parliament that the SFO had been called on to "consider whether there should be a criminal investigation" into the firm's collapse that led to the loss of 6,000 jobs.
The government's recommendation comes following its own four-year investigation into the collapse.
MG Rover folded in April 2005 with debts of more than one billion pounds. China's Nanjing Automobile bought its assets, reviving the MG sports car brand.
"The Serious Fraud Office has today been asked to consider whether there should be a criminal investigation following completion of an inquiry into the collapse of the MG Rover Group owing creditors nearly 1.3 billion pounds," said the statement.
"Following legal advice, the (government's) Rover Report will not be published at this time in order to ensure any potential prosecution is not prejudiced.
"The position will be reviewed following the outcome of the SFO's considerations," it added.
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