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Carillion bosses drove construction firm off a cliff, say MPs

Carillion bosses drove construction firm off a cliff, say MPs

Business
Media playback is unsupported on your device Carillion's board presided over a "rotten corporate culture" and was culpable for its "costly collapse", two committees of MPs have concluded.They also called for a potential break-up of the big four audit firms, after they "waved through" the indebted construction firm's accounts. And they attacked the government for lacking "decisiveness and bravery" to tackle corporate regulation failures.The MPs said regulators should consider disqualifying the directors.Carillion collapsed under a £1.5bn debt pile in January. It employed 43,000 people, about 20,000 of them in the UK, thousands of whom have lost their jobs.It also held numerous public contracts, such as the maintenance of schools and priso...
Carillion boss denied seeking 'bailout'

Carillion boss denied seeking 'bailout'

Business
The chairman of Carillion denied that an emergency Government loan to the company would be "a bailout‎" even as he warned ministers that a failure to support it could risk "the physical safety of employees and the members of the public they serve".Sky News has exclusively obtained an email sent by Philip Green to John Manzoni, the Cabinet Office permanent secretary‎, less than 48 hours before Carillion was placed into compulsory liquidation.The message, which set out the construction group's request for a "bridge through to a restructuring", provides fresh evidence of the Carillion board's efforts to avoid taking responsibility for the parlous state of its finances, even as it neared collapse.In the email, dated 13 January, Mr Green said an emergency Government loan, thought to be for £10m
Carillion investors were 'fleeing for the hills'

Carillion investors were 'fleeing for the hills'

Business
Carillion's investors fled the failing company as it headed for disaster, according to MPs.The construction firm's annual reports were a worthless guide to its financial health and raise major questions about corporate governance, the MPs say.The comments come in a joint report published on Monday by the Work and Pensions and Business committees.Carillion's former auditor, KPMG, will be questioned by MPs on Thursday.Britain's second largest construction company collapsed last month, with the loss of almost 1,000 jobs. There were also job cuts and widespread disruption among sub-contractors.The Work and Pensions and Business, Energy and Industrial Strategy committees have already taken evidence from former Carillion directors. On Monday, the MPs released details of written comments from the...
Hundreds of jobs saved after Carillion collapse

Hundreds of jobs saved after Carillion collapse

Business
The collapse of Carillion has resulted in 377 staff being made redundant, but more than 900 jobs being saved so far.The company went into liquidation in January after being brought to its knees by mounting debts and a hole in its pension fund.One valuation, based on the cost of an insurance company covering the deficit, puts that hole in the pension fund at £2.6bn.The official receiver confirmed the figures for redundancies today, and said: "I recognise this will be a worrying time for all those affected, their families and local communities. I would like to thank all the staff for their professionalism throughout the liquidation.Video:MP seeks Carillion crisis pension reform"I am expecting many employees working on other Carillion contracts to transfer in the coming weeks and we are conti
Carillion tried to 'wriggle out' of pension contributions

Carillion tried to 'wriggle out' of pension contributions

Business
Carillion "wriggled out" of payments into its company pension schemes as its troubles grew, while it carried on paying shareholder dividends and bosses' bonuses, say MPs.The Work and Pensions Committee is questioning the way pension investments were managed at the collapsed outsourcing giant.The schemes overall are in deficit.But last year contributions to the pension funds were deferred until 2019, to help shore up the firm's finances. The committee has published a letter from Robin Ellison, chairman of trustees of Carillion's pension scheme, giving an account of the last few years and suggesting they have been left with a funding shortfall of around £990m.The letter shows that pension trustees were "kept in the dark" about the state of Carillion's finances until late last year, the commi