The news comes amid speculation that the report could be politically damaging to Gordon Brown and other senior ministers, whose actions face scrutiny. The car maker collapsed with the loss of 6,000 jobs at the start of the 2005 general election campaign. Richard Alderman, director of the Serious Fraud Office (SFO), will decide within a few weeks whether to launch a full investigation into the collapse of Britain's last indigenous volume car maker. In a letter, sent on July 6, an official at the Companies Investigation Branch of the Insolvency Service suggested that Lord Mandelson, the Business Secretary, might not publish the report. "The secretary of state has decided that it is appropriate for the report to be passed to the SFO so that they may consider whether there are matters that they wish to investigate. Any consideration by the secretary of state as to whether the final report should be published has therefore been postponed pending the outcome of that referral." The suggestion has inflamed political tensions over the report. It is also counter to ministers' claims that the report would be made public. The Daily Telegraph understands that political damage is likely to centre on whether ministers helped to keep the car company solvent until the taxpayer-funded Pension Protection Fund was set up, ensuring that the business's pensioners only lost a fraction of their savings. There have also been claims that Tony Blair, then Prime Minister, wanted to save MG Rover but then Chancellor Gordon Brown pulled the plug on advice from special adviser (now Dame) Shriti Vadera. Ken Clarke, the shadow business secretary, said: "It would be outrageous if this report were never published. The public have a right to know the background to the collapse of the company. "There are former Rover workers waiting for possible compensation which cannot be paid until the report is published. Lord Mandelson should remove any doubt about his intention to publish this report in full as soon as possible." The letter was sent to Jon Moulton, the chairman of Alchemy Partners, the venture capitalist unsuccessfully tried to buy MG Rover in 2000. It was eventually bought by four businessmen – John Towers, Nick Stephenson, John Edwards and Peter Beale – who made millions before the company collapsed. The four, all former directors of MG Rover, would be at the centre of any SFO probe. They have already suggested the report could be politically damaging. Jack Irvine, their spokesman, said: "It is outrageous that a Government report that has taken four years and cost taxpayers £16m won't see the light of day. However, I am not surprised. If the former MG Rover workers knew the political chicanery that took place and the double-dealing surrounding the closure they would be horrified." A spokesman for the Department for Business insisted the report would be published and pointed to comments from Business minister Pat McFadden earlier this month, in which he said the report would be made public. He said: "I give this assurance to the Rover workers and their families. If the SFO find that there is no case for a criminal prosecution then we will publish the report. There is no question of kicking this into the long grass."Government may break its promise over MG Rover inquiry
The controversial report into the collapse of MG Rover might never be published, The Daily Telegraph can disclose.
Thursday, 30 July 2009
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