Industry: MG Rover bosses took 42 million pounds

MG Rover collapsed in 2005

Four bosses at MG Rover took £42 million in pay and pensions from the firm, a report into the collapse of the UK car maker has revealed.

The 'Phoenix Four' - former MG Rover chairman John Towers, vice-chairman Peter Beale, Nick Stephenson and John Edwards - bought MG Rover for a nominal £10 from owner BMW in 2000 and gained an interest-free loan of £427 million from the German car maker.

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They were unable to turn the company around and it collapsed in April 2005, with debts of more than £1bn.

The report says Towers, Stephenson, Beale and Edwards each received around £9 million. Chief executive, Kevin Howe, is said to have taken £5.7 million. All have denied any wrongdoing.

Rover's collapse led to the closure of the factory at Longbridge in Birmingham, which has since re-opened under Chinese ownership.

Publication of the report follows a decision by the Serious Fraud Office not to pursue a fraud investigation into the demise of the company.

The independent inquiry into the crisis has cost the taxpayer more than £16 million and details the government's efforts to save the firm, including a £100 million bridging loan are included in the report.

It has been suggested that the report will make 'uncomfortable' reading for the Government, especially over the bridging loan.

Labour MP Richard Burden, whose Birmingham Northfield constituency includes Longbridge, said workers had been waiting eagerly for the report. 'Like most other people, I have found it frustrating that the inquiry has taken so long and astonishing that it has cost around £16 million.

'I just hope, having taken so long and cost that much, this inquiry provides some answers about the events that led up to the collapse of MG Rover back in 2005.'