LONDON -- The UK accounting watchdog examining the bankruptcy of carmaker MG Rover said on Thursday its investigation into the collapse raised "a number of questions" that could prompt a full government probe.
The UK government last month asked the Financial Reporting Council (FRC) 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 FRRP's report does raise a number of questions relating to the affairs of MG Rover and its associated companies which the FRRP believes may be relevant for the DTI (Department of Trade & Industry) to consider," the FRC said in a statement.
The FRC's Financial Reporting Review Panel (FRRP) issued its report on the investigation on Thursday. It is now up to the UK Secretary of State to decide whether to launch a fuller investigation.
"The Secretary of State Alan Johnson has received a copy of the report and will respond shortly, after considering its contents," a DTI spokeswoman said.
The findings were consistent with comments made by FRC Chief Executive Paul Boyle who told Reuters on Monday the report may have unearthed irregularities.
The FRC's mandate is to pass on evidence of irregularities to the government which has the power to launch a full investigation.
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.
