“This report tells an all too familiar story of greed and incompetence," he continues. "Former Rover employees throughout the Midlands will be shaking their heads in disbelief at the colossal sums that the Phoenix Four [the group of businessmen who bought MG Rover from BMW for £10 in 2000] made off with in pay and pensions. The government needs to take action to ensure that this type of cynical asset stripping can never happen again."
Thurso says the report’s publication should now unlock access to a fund originally set up for the benefit of ex-employees and Lord Mandelson must immediately establish if this money can now be distributed among workers who lost their jobs.
“The government’s press briefings at a sensitive time in takeover negotiations were ‘irresponsible’ in the eyes of the inspectors. This is a damning verdict on the pervasiveness of New Labour’s spin machine in the workings of government," he comments.
“It shouldn’t be forgotten that the government jumped at a £10 bid from an inexperienced consortium, having failed to do proper due diligence. This turned out to be a terrible decision for all involved.”
The British government is now reportedly taking legal action to bar the Phoenix Four from any company management positions.
Do you think the government could have prevented the demise of MG Rover? Post a comment below.
Related articles:The Good, The Bad and The Ugly
Share this story