Sunday Mirror (Northern Ireland)
Only chasing after profits
Damning verdict on bosses at collapsed firm Carillion
BOSSES at Carillion were more concerned with short-term profits than protecting thefuture of the firm, a damning report found.
The independent review uncovered “gross failings of corporate governance and accounting” at the failed construction and outsourcing giant.
Carillion, which employed more than 20,000 people in the UK, went into liquidation in January with a £1.5billion hole in its balance sheet.
Five lenders – HSBC, Lloyds, Santander, RBS and Barclays – commissioned the review last year as they were looking at funding the firm.
The report, released by the Commons Work and Pensions and Business Committees today, found Carillion’s debt was managed aggressively through “short-term deferral of payments”.
Analysis by the committees shows that on
January 12, the day
Carillion’s board were trying to secure an emergency £10million loan from the Government, the firm paid at least £3.1million in consulting fees.
The loan was refused and Carillion went into liquidation 72 hours later.
In a statement, Labour’s Frank Field and Rachel Reeves said of the consultants: “As everything collapsed around them, they were merrily cashing cheques.” Almost 1,400 staff have lost their jobs since the company
went into liquidation.
keir.mudie@mirror.co.uk
BIG banks about to lend money to Carillion commissioned an independent study into the company’s conduct.
It found the construction giant guilty of “gross failings of corporate governance and accounting.”
In plain language that means it wasn’t fit to operate. Yet the Government missed the writing on the wall when it awarded Carillion contracts.
Now jobs have gone and pensions are under threat.
Another independent report is required. Into how ministers got it so catastrophically wrong for so long.
madeuthink@mirror.co.uk