MPs demand more evidence from Carillion bosses

Aaron Morby 7 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

Former Hewlett civils firm fails amid director blame game

£17m turnover CORE Special Projects ceases trading after 10 years
2 hours ago

Problem job sinks Mace construction profits

Consultancy arm now making more money than larger construction division
24 hours ago

Acciona heads May contracts league with water job

Mace displaces Sir Robert McAlpine at the top of the annualised rankings
2 hours ago

Cardo swoops for wall insulation specialist SERS

Building maintenance group continues rapid growth spree with takeover of retrofit expert
2 hours ago

New finance chief at Laing O’Rourke

Accountant Ilze Williamson joins from architecture practice
2 hours ago

United Living acquires civils specialist Glenelly

Latest move in the power infrastructure sector
2 hours ago

Gloom slowly lifting from construction buyers

"Worst phase of spending cutbacks may have passed"
24 hours ago

Over 1,300 finished flats lying empty in Gateway 3 logjam

Final safety sign-off stalls occupation and pushes developers to the brink
1 day ago

Modular specialist Elements Europe falls into administration

Move into main contracting sinks pod specialist
1 day ago

Magrock lands first job with Big Yellow Self Storage

Construction to start this summer on Kentish Town site
21 hours ago

Van Elle hit by BSR delays as £134m revenue falls short

Building Safety Regulator logjam delays major resi piling jobs
1 day ago

ECF seals £1bn deal for Northampton town revamp

Development agreement for 25-acre town centre reboot
1 day ago

Demolition starts revamp of 16 acre Luton site

Construction to start by end of year on major industrial and logistics scheme
1 day ago

Anglian Water ramps up pipeline rollout with fresh 260km deal

More drought-busting pipeline work flows to Strategic Pipeline Alliance firms
1 day ago

Framework winners named on Peel Ports £750m deal

Graham and Mclaughlin & Harvey share major works lot
1 day ago

Reeves pledges £15.6bn for regional transport

Chancellor to unveil big spending package today for Metro mayors
2 days ago

Kier ditches diesel for hydrogen in green major site power trial

Trial shows over 20,000 litres of diesel already saved at Bridgwater Tidal Barrier
2 days ago

Plans unveiled for 1million sq ft commercial scheme

Design & build opportunities available at Scunthorpe site
2 days ago

Bouygues seals £119m deal for twin college builds in Wales

Work starts this month on Barry Waterfront and Cardiff Airport tech hubs
2 days ago

MPs back Sellafield delivery shake-up but costs spiralling to £136bn

Four out of five recent projects now on track, but wider site faces growing risks
2 days ago

Fraudster ordered to pay back £80k to contractors

Office worker embezzled £516,000 from two construction companies
3 days ago

Wates gets start date for Victoria Tower restoration

Work to begin this summer and last to 2031
2 days ago

Kier upgrades margin target as order book holds firm

Contractor eyes 4.5% margin as bid discipline pays off
3 days ago

Willmott Dixon bags hat-trick of leisure centre energy retrofits

£15.8m North Herts Council deal includes replacing boilers for air source heat pumps
3 days ago

Drylining giant takes bold step on accepting design risk

Siniat liability pledge designed to stop risk being pushed down supply chain
3 days ago

Section 106 agreements now taking an average of 16 months

Planning departments cannot cope with workloads leading to more house building delays
3 days ago

Winvic starts £200m Towcester Park logistics scheme

IM Properties presses ahead with 1.1m sq ft Midlands logistics park
4 days ago

Safety regulatory drag takes toll on Getjar turnover

Revenue slumps 42% as firm adapts to slower resi job starts
4 days ago

Erith seals early works for £300m London City Road tower

Demolition to start this summer for landmark Old Street roundabout job
4 days ago

Galliford gets sign-off to start Wigan Galleries job

Fettlers scheme starts with £44m market hall and basement build
4 days ago

Contractor services