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

Planning officers to get powers to bypass committee stage for housing

Rayner reform plan to cut out local council planning committees
3 hours ago

National Insurance hike to delay construction recovery

Arcadis paints varied picture with full recovery delayed until 2026
9 hours ago

Gratte Bros rides out cost rises with profit increase

M&E specialist warns of further upward pressure on wage costs
8 hours ago

Sellar’s 36-storey London City office tower approved

Demolition work to start in 2026 at 60 Gracechurch Street site
2 days ago

Roofers caught using phone lights to work at night

Roofing boss handed suspended prison sentence for lack of edge protection
9 hours ago

£380m North West housing framework out for bid

St Helens-based Torus aims to build 9,000 homes by 2029
9 hours ago

Historic property magazine to close

Estates Gazette has been in business since 1858
3 days ago

M&S Marble Arch rebuild approved after three-year planning fight

Plans were delayed when Michael Gove backed carbon campaigners
4 days ago

£191m revamp funding approved for London Barbican Centre

Construction to start in 2027 on five-year programme
4 days ago

RED Construction tops £100m turnover

Builder maintains profit margin at 1.7% as business nearly doubles in size
3 days ago

Timber designs shortlisted for roads ‘footbridge of the future’

Three of five designs for National Highways propose timber structures over busy highways
3 days ago

PM pledges to fast-track 150 infrastructure schemes

Fresh promise to speed up planning decisions on infrastructure and house building
4 days ago

Amey FM firm fined after legionella kills prisoner

Court fines company £600,000 for prison upkeep failures
3 days ago

Buyers report boom in commercial work

Construction bucks slowdown in general economy
4 days ago

Plans in for £250m Stockport 8 housing-led scheme

Work to start on phase 1 by the end of next year
4 days ago

Galliford Try tops monthly contracts league

Contract awards slow down in November
4 days ago

Erith explosives set demolition record at Sizewell

Watch blast at former nuclear turbine hall: Video
4 days ago

Vistry to build 950 homes next to Olympic Park

Developer signed for £600m Pudding Mill Lane scheme in East London
4 days ago

Inflatable formwork used for 45m tall cement silo

Ground-breaking dome silo inflated at Tilbury Docks
4 days ago

Briggs & Forrester sells maintenance arm

100 engineers to move over to new owner
5 days ago

£2bn Edinburgh ‘West Town’ scheme approved

7,000 homes to be built at 205-acre site
5 days ago

Rayner approves Lancashire super prison

Communities secretary overrules planning inspector for 1,700 inmate prison.
5 days ago

Wates boss returns after collapse of his own contractor

Paul Nicholls was head of the failed Real construction group
6 days ago

Trio secure Birmingham deal to retrofit 3,000 homes a year

Specialist contractors to install insulation, efficient heating and solar panels
5 days ago

Costain confirms £400m HS2 tunnels win

Work to start early next year on tunnel and lineside mechanical and electrical systems
5 days ago

First nuclear reactor installed at Hinkley: Video

Watch precision operation at Somerset site
5 days ago

Winner named for Harbourside revamp

Local Irvine contractor to start transformation of beach front
5 days ago

New Fair Payment Code goes live today

Latest bid to get subcontractors and suppliers paid within 30 days
6 days ago

Lincolnshire concrete supplier files administration notice

Ever Readymix Concrete & Screed operates three depots and a fleet of 20 trucks
6 days ago

Graham lands first deal on Liverpool’s largest brownfield site

Contractor bags infrastructure package on 10.5 hectare site
1 week ago

Contractor services