Carillion finance directors to be investigated by accountancy watchdog
The UK’s accountancy watchdog has launched an investigation into two former finance directors of collapsed construction firm Carillion. The Financial Reporting Council (FRC) said the investigation, which will examine the conduct of Richard Adam and Zafar Khan, will be done by its executive counsel and enforcement division.
It will look at the preparation and approval of the financial statements of Carillion for 2014, 2015 and 2016, and for the first six months of 2017, as well as the preparation and reporting of other financial information during that whole period.
The FRC said it is liaising closely with the Official Receiver, the Financial Conduct Authority, the Insolvency Service and the Pensions Regulator “to ensure that there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion”. Earlier this year, the FRC already announced that it was conducting a separate investigation into how KPMG audited the accounts of Carillion.
Carillion collapsed into liquidation in January leaving a £900m debt pile, a £590m pension deficit and thousands of jobs at risk. Former bosses of Carillion, which was one of the government’s most important contractors, have also come under fire for massive salaries that they continued to receive while Carillion headed towards bankruptcy.
Last week, the Official Receiver, the body that is handling the construction firm’s liquidation, said 8,521 jobs had so far been saved since the company went into liquidation. But more than 1,500 workers have lost their jobs.