Ex-carillion chief admits he ‘should have acted sooner’ to save company
The former head of defunct construction giant Carillion has admitted he should have acted sooner before its collapse, while the firm’s finance chief denied being “asleep at the wheel”.
Ex-chief executive and Scottish businessman Keith Cochrane, who is among a string of senior figures being grilled by MPS, claimed all the decisions he took were in the best interests of the company.
He added: “Clearly the business did have issues – undoubtedly. And clearly, do I wish we had done something about it sooner? Absolutely. I recognise that. I can assure you that all the decisions I took in seeking to do the best thing for the business at that juncture.”
Mr Cochrane is a Glasgow University graduate who had worked as group finance director for both Perth-based Stagecoach and Scottishpower before joining Carillion’s board in 2015.
The appearance of Carillion directors, including former finance chief Zafar Khan, comes after the outsourcing and construction giant collapsed mid-way through last month.
Carillion was struggling under nearly £900 million of debt and last year reported a £587m pension deficit when it fell into liquidation.
When pressed about his responsibilities, Mr Cochrane added: “From my perspective as non-executive director during this period of time, the role of the board was to challenge on the basis of information that was provided from management. That is what we sought to do.”
Meanwhile, Mr Khan denied being “asleep at the wheel” and expressed his surprise over the firm’s liquidation.
He said Carillion was grappling with mounting debt, significantly underperforming contracts and tough construction markets in the UK.
Despite the precarious position the company found itself in, Mr Khan insisted he “did everything” he could have done.
“No, I don’t believe I was asleep at the wheel because as soon as I came into the role, we were looking to tackle the issues and the key focus of my time in the role was to bring net debt down,” he said.
Mr Khan added: “I believe I did everything that I could have done.”
When pushed by MPS on the business and work and pensions committees, Mr Khan said he did not expect the company to collapse: “I was surprised at the outcome that eventually came to pass.”
The executives brushed off suggestions that Carillion was looking out for shareholders at the expense of employees, having continued to pay dividends while the company was struggling under a hefty pension deficit.