Monday, 6 July 2009

So what is going on at Rover?

It seems a little strange that four years after the event,the Industry secretary announces that there will be an investigation into the collapse of Rover after all.

In a written statement to the House,it was announced that the Serious fraud office will examine the events of 2005 and the period when the four businessmen were allowed to buy the company from BMW for £10.

At the time of the deal an alternative was on the table from the Alchemy group who proposed a greatly slimmed down company which would concentrate on luxury car production.

The problem being that it would have resulted in huge job losses both directly at the plant and in the thousands that were indirectly employed.

Not surprisingly the government came out on the side of the so called "Phoenix four" who now accused of irregularities but who in a statement blame the while thing on the government wanting to cover up its own irregularities.

The surprise in all this is the amount of time that it has taken to announce the enquiry and that the administrators,Price WaterhouseCoopers cleared the four of any irregularities.

Also the government offered to support the group when it looked like administration was on the cards

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