MPs demand more evidence from Carillion bosses

Aaron Morby 6 years ago
Share

Watchdog MPs have demanded more answers from Carillion chiefs after they failed adequately to address what action they took to save the group in the months before its collapse.

Former CEO Richard Howson has been called to provide more details about the Royal Liverpool Hospital concrete beam failures
Former CEO Richard Howson has been called to provide more details about the Royal Liverpool Hospital concrete beam failures

The former directors are being pressed for more detail on points in their testimonies to the joint business and pensions committee inquiry, particularly where it appeared to contradict other evidence.

The directors had blamed a number of different factors for Carillion’s collapse on 15 January.

Rachel Reeves and Frank Field, who are chairing the inquiry into Carillion’s collapse branded the board earlier this month as “a series of delusional characters” who “maintained that everything was hunky dory until it all went suddenly and unforeseeably wrong”.

The Committees have now contacted the Federation of Small Business offering them the chance to respond to the dismissal by the Carillion directors of their evidence that Carillion were “notorious late payers” who “abused their dominant position” and left suppliers waiting for payment even beyond their extraordinarily long contracted payment terms.

Former CEO Richard Howson has been called upon to provide more detail about the structural beams at the Royal Liverpool Hospital whose design flaws were among the many factors ascribed some responsibility for Carillion’s downfall.

He has also been asked about his dealings on the Qatar contract – singled out for particular blame for the company’s demise –  and how much he was paid for his ongoing work in Qatar after he was removed as CEO.

Former finance director Zafar Khan has been asked to clarify again the terms of his departure, including whether a non-disclosure agreement was attached to it.

Meanwhile chairman Philip Green is asked about the “surprise” deterioration in the company’s cash flow shown in the September 2017 presentation that Zafar Khan stated had “spooked” the board and led to his dismissal.

Also Richard Adam, finance director between April 2007 – December 2016, is being called on to explain in more detail what he thinks happened to the “healthy” company he left, for it to go into compulsory liquidation a year later, and about acquisitions like Alfred McAlpine, which added £650m “goodwill” to Carillion’s books but otherwise held net liabilities of £50m.

Latest news

Geoffrey Osborne files administration notice

£325m turnover contractor employs 800 staff
18 mins ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
15 seconds ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
10 mins ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
22 mins ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
23 seconds ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
20 hours ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
1 day ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
2 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
1 day ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
23 hours ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
23 hours ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
2 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
24 hours ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
2 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
2 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
2 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
2 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
3 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
3 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
3 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
3 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
3 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
3 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
4 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
3 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
4 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
4 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
3 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
4 days ago

Wates-owned SES restructure delivers record profit and revenue

Building services contractor revenue soars to almost £300m
4 days ago

Contractor services