Rover: Bosses escape quizzing

Nicholson indicated that the results of this 'initial look' at MG Rover's accounts will not be published until mid-May, several days after a General Election in which MG Rover is likely still to be a political hot potato. Nicholson said of Knight and Brindle: 'They are pretty savvy, very knowledgeable, the top in their field.'

The panel began taking an interest in MG Rover last week after reports that a black hole had emerged with up to £400m not accounted for in financial reports. The probe became official after the panel received direction from Hewitt.

After Knight and Brindle's initial investigation, there could be a full-scale probe in which three further senior investigators would be seconded and which would call in evidence from the parties involved.

Following the launch of today's inquiry, MG Rover boss John Towers categorically denied there was a black hole in the accounts. Towers said claims that Rover's past accounts showed that up to £400m has not been properly accounted for were based on a 'fundamental mistake'.

He said the claims, which surfaced last week, of an accounting black hole did not allow for the company's assets, including stock and cash. Of the launch of the inquiry, Towers told the BBC: 'At least it will quieten down some of the more ridiculous notions about so-called black holes.'

Veteran at inquiry's helm

CITY grandee Sir Bryan Nicholson, 72, who is to head the inquiry into Rover's accounts, is widely respected in industry and the Square Mile. An Oxford politics, philosophy and economics graduate, he has had a wide-ranging career, including five years as chairman and chief executive of the Post Office.

He is also a former chairman of Rank Xerox, the Manpower Services Commission, Cookson and private healthcare group Bupa. He was head of the CBI from 1994 to 1996 and became chairman of the Financial Reporting Council in 2001. Its powers were later beefed up in the wake of accounting scandals such as that at collapsed US energy trader Enron.

Inquiry head's many roles

THE man charged with passing judgment on the financial reporting at MG Rover has spent a career at the heart of the City but has kept his head well below the parapet. After 35 years at Simmons & Simmons, the last five as senior partner, Knight, 59, has been collecting posts in the City's Establishment. As well as being chairman of the Financial Reporting Review Panel, he is deputy chairman of the council of Lloyd's of London and a member of the Gaming Board.

Knight will be aided in his investigation by Ian Brindle, 61, who ended his career at the pinnacle of the accounting profession by seeing through the merger of Price Waterhouse and Coopers & Lybrand.