The relationship between Phoenix Venture Holdings director Nick Stephenson and Dr Qu Li, which was not only professional but also personal, became one of the most unexpected revelations in the investigation connected with MG Rover Group scandal and the way how the directors of Phoenix Venture Holdings paid themselves large amounts of money. It is known that Dr Li received £1.69million for 15 months work providing consultancy services to MG Rover Group. She was already involved in Anglo-Chinese business, and was hired by Phoenix Venture Holdings in January 2004 to provide consultancy services. It became unclear who recruited her but the contract provided a company car and a retainer of £1,000 a week plus £1,000 for each day Dr Li was involved in business negotiations abroad, and £750 a day in the UK. Also, by words of financial director of MGRG, the agreement included a ‘reasonable success fee’ to be agreed by both sides on a case-by-case basis.
In 2004-2005, Phoenix Venture Holdings paid about £375,000 to China Ventures Ltd, a company of which Dr Li was sole shareholder and director. Also, Dr Li received fees through a British Virgin Islands company associated with her. For example, in September 2004, when the Shanghai Automotive Industry Corporation paid £37 million for the blueprints for the Rover 75, Dr Li received a fee in the amount of £740,000 through this BVI company. Quite large amounts were paid for some deals into a Singapore account.
Mr Stephenson paid the money without consulting most of the other directors. He was a member of the Rover group board, in 1996-1999, then Phoenix deputy chairman. Also, he was a member of a consultancy company to the car firm.