The watchdog Financial Conduct Authority (FCA) said Richard Adam and Zafar Khan were both aware of serious financial troubles in Carillion’s UK construction business but failed to reflect this in company announcements or alert the Board and audit committee, leading to poor oversight.

Adam and Khan have been fined £232,800 and £138,900, respectively. The fines were imposed after both withdrew their challenges to the FCA’s decision.

The pair were originally fined £318,000 and £154,400 respectively in 2022.

As finance directors, the pair had responsibility for Carillion’s procedures, systems and controls relating to financial reporting. These were not sufficient to ensure that contract accounting judgments made in its UK construction business were made, recorded and reported appropriately.

The FCA found both acted recklessly and were knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: ‘Those in positions of responsibility have a duty to keep the market accurately and adequately informed.

“With Carillion, we have seen the serious impact it can have when they don’t. The action taken against Mr Adam and Mr Khan demonstrates our commitment to preventing market abuse and upholding the standards we expect.’

Adam was finance director of Carillion from April 2007 to 31 December 2016 while Khan was in the post from 1 January 2017 to September 2017.

Carillion went into liquidation in January 2018.

Former chief executive officer Richard Howson, who was fined £318,000 in 2022, is still appealing the decision and his case is due to be heard at London’s Upper Tribunal next month.