Carillion Bosses Drove Construction Firm Off A Cliff, Say MPs

A Government spokesman said: “Our priority has been the continued, safe running of public services and to minimise the impact of Carillion’s insolvency. The plans we put in place have ensured this.

“The Government wants to see a strong and varied supplier base where companies of all sizes benefit from long term and stable Government contracts.

“That’s why we have recently announced a number of measures to support Government suppliers – strengthening our commitment to prompt payment; protecting staff, businesses and small suppliers from irresponsible directors.

“We welcome the report from the joint select committee and will respond fully in due course.”

Rebecca Long Bailey, shadow secretary of state for business, energy and industrial strategy, commenting on the joint select committee report on Carillion, said: “This report shows that the big four need to be broken up.

“It highlighted what has been long known to industry insiders – that a cabal of four big auditors have too cosy a relationship with the companies they work for.

“There are a multitude of problems with the big four in the insolvency process such as the dependence of the insolvency practitioner on secured creditors for appointments, therefore, making them primarily responsive to secured creditors’ wishes and the incentive for big firms to extend the insolvency process and rake in large fees.

“Millions racked up in debt, thousands of workers losing their jobs and pensions, and supply chain business at risk of collapse, because not only did the corporate auditors fail to hold Carillion’s misbehaving managers to account, but because the Government looked on in ignorance at the same time, proceeding to award contract after contract to a firm which had issued numerous profit warnings.”

Source : http://www.itv.com/news/2018-05-16/carillions-board-presided-over-rotten-corporate-culture-say-mps/

Carillion’s board presided over ‘rotten corporate culture’, say MPs
Carillion directors ‘stuffed mouths with gold’, say MPs
Carillion insider dealing probe by the FCA confirmed
Infrastructure firms lost investors £7bn in six months
Jeremy Corbyn's Labour conference speech in full
Carillion’s 'delusional directors' drove the firm off a cliff, MPs claim
Carillion chiefs in the firing line as MPs launch inquiry
Carillion boss tells MPs he's 'truly sorry' for collapse of construction contractor
Construction firm Carillion becomes a target as stock crashes for a second day
Carillion becomes a potential takeover target as analysts say it faces significant rights issue