LONDON -- The UK accounting watchdog examining the bankruptcy of carmaker MG Rover may have unearthed irregularities that could prompt a fuller Government enquiry, the watchdog's Chief Executive, Paul Boyle, told Reuters on Monday.
"There might be some issues that they (the Department of Trade and Industry) might want to look at," he said, adding that the Financial Reporting Council's report would be issued later this week.
The UK Government last month asked the council to examine MG Rover's accounts after the carmaker filed for bankruptcy and had to lay off the majority of its 6,000 workforce.
The council's mandate is to pass on evidence of irregularities to the government's secretary of state for trade and industry, who has the power to launch a full investigation.
"The secretary of state ... has the power to order a full investigation if evidence of misconduct on the part of directors emerges," said a spokeswoman for the Department of Trade and Industry, adding that the department had not yet received the council's report on MG Rover.
"What happens next depends what's in their report," the government spokeswoman added.
A consortium of British businessmen, Phoenix Venture Holdings, bought MG Rover from BMW in 2000 and has since received criticism for the size of salaries and other benefits it has awarded its directors.