Government fast-tracks probe into Carillion directors

Aaron Morby 6 years ago
Share

Business Secretary Greg Clark has ordered the Insolvency Service to fast-track and broaden its probe into the actions of Carillion’s past and present directors.

The Official Receiver’s investigation will scrutinise whether directors of the failed group caused detriment to those owed money, including staff and subcontractors.

The Business Secretary has also written to the chairman of the Financial Reporting Council, Sir Win Bischoff, and asked it to conduct an investigation into the preparation of Carillion’s accounts past and present, as well as the company’s auditors KPMG.

Clark said: “It is important we quickly get the full picture of the events which caused Carillion to enter liquidation, which is why I have asked the Insolvency Service to fast-track and broaden the scope of the Official Receiver’s investigation.

“In particular, I have asked that the investigation looks not only at the conduct of the directors at the point of its insolvency, but also of any individuals who were previously directors. Any evidence of misconduct will be taken very seriously.”

The business secretary also chaired a meeting yesterday with leading business and construction trade bodies, representing Carillion’s sub-contractors including representatives from the construction sector.

Trade bodies meeting Business Secretary

  • British Constructional Steelwork Association
  • Build UK
  • Building Engineering Services Association
  • Civil Engineering Contractors Association
  • Construction Products Association
  • Electrical Contractors’ Association
  • Federation of Master Builders
  • Specialist Engineering Contractors Group

As a result of the expected catastrophic fallout from Carillion’s collapse, BESA and ECA are calling for Government to implement a five-point action plan:

  • Any SME contractors already working on Carillion projects should be allowed to continue on the projects and be paid directly.
  • The UK Government must actively support the Peter Aldous Bill on retentions and ensure it is allocated enough Parliamentary time to progress.
  • Major contractors should be precluded from winning any further public sector contracts unless they can prove they pays the supply chain promptly.
  • Major corporate public sector suppliers like Carillion worthy of their own Government account managers, and who rely on SME supply-chains for successful delivery must be made to implement transparent supply-chain payment systems, statutory public sector payment requirements, Project Bank Accounts and no retentions, throughout the supply chain.
  • Government must monitor and enforce the public sector 30-day payment supply chain model as opposed to Carillion’s own 126-day payment terms, which leaves thousands of SMEs struggling for cash flow to pay staff and suppliers.

Latest news

Lonsdale went down owing £65m to supply chain

More than 600 firms owed money as reduced credit rating sinks M&E giant
3 days ago

Wates only bidder for £80m Cardiff estate rebuild

Council contacted 20 framework firms but received only one bid for 295-home Channel View estate rebuild
2 days ago

£21m legal battle over flawed concrete at Salford flats job

Developer in compensation battle with Arcadis after new concrete core demolished
2 days ago

Abu Dhabi developer Aldar Properties buys London Square

UAE giant swoops on resi specialist in vote of confidence for London market
2 days ago

Hunt for delivery partner to revive New Hospital Programme

Programme delivery partner to get £600m fee to get plans back on track
3 days ago

Green light for new £780m Essex garden village

3,700 homes and four new schools to be built at Dunton Hills
3 days ago

Laing O’Rourke makes a £288m loss

Rampant inflation on fixed-price jobs and problem contracts blow hole in accounts
3 days ago

Keltbray, OCU and Clancy clinch £1bn electricity network upgrade

Scottish and Southern Electricity Networks awards biggest ever deals for central southern England
4 days ago

G&T enlisted for commercial review of HS2 main civils contracts

Phase 1 Main Works Civils Contracts to come under cost scrutiny
3 days ago

TClarke order books doubles to top £1bn for first time

M&E specialist on track to exceed £500m turnover this year
3 days ago

Wates signs Government safety remediation pact

Private builder belatedly signs fire safety developer remediation contract
3 days ago

Liverpool all-electric industrial park approved

McLaren and Caddick in chase for Sefton 800,000 sq ft Atlantic Park scheme
4 days ago

Former Buckingham Group MD to join John F Hunt

Simon Hyams is new Managing Director for Contracting
4 days ago

Three in race for retendered £150m A9 dualling job

Bidders take another look after client takes on more risk
4 days ago

Clancy tops £300m revenue in fifth year of growth

Civils contractor delivers £13.5m pre-tax from water and energy sector work
4 days ago

Tower crane collapses on Edinburgh resi site

Jib falls onto apartment block under construction: Video
5 days ago

Salboy drops office space from Viadux Phase Two

Developer to focus on Manchester residential towers of 76 and 23 storeys
5 days ago

Warwick Uni plan for science and engineering campus

370,000 sq ft science and engineering precinct submitted for planning
4 days ago

Morgan Sindall chalks up Greater Manchester schools treble

Bury, Stockport and Wythenshawe school jobs will create 1,600 pupil places
4 days ago

Plans in for £65m Blackpool multiversity campus

Council leads plan for Talbot Gateway learning campus
4 days ago

Laing O’Rourke wins first phase of £700m Oxford R&D district

Landmark Red Hall and two labs to be built in phase 1a of Oxford North scheme
6 days ago

Ardmore wins retrofit deal on £200m Chancery Lane office

Building will be transformed to provide 105,637 sq ft of office space
6 days ago

Construction’s “Leading Lights” recognised

More than 50 winners in latest Considerate Constructors Scheme awards
5 days ago

Balfour Beatty clinches £20m Norfolk coastal defence jobs

Firm will install rock armour at Cromer and Mundesley
5 days ago

Architects join construction union Unite

Section of Architectural Workers forms official branch
6 days ago

Boot to build £20m lightweight aviation composites factory

Work starts on Sheffield University's COMPASS R&D facility
5 days ago

GMI secures £27m Leeds City College job

Site clearance underway for new Mabgate campus
6 days ago

Balfour signs deal with Koreans for UK power transmission jobs

Contractor strengthens large-scale onshore power transmission capability
6 days ago

36 storey south London build to rent flats tower approved

Construction to start next year on £220m Croydon scheme
6 days ago

Hunt for firms for £400m volumetric offsite deal

Procurement for Housing aims to expand its pool of firms on major offsite framework
6 days ago

Contractor services