Birmingham Post

Union condemns ‘debacle’ as no action is taken against bosses following collapse

Ministers ‘washed hands’ of Carillion

- Staff Reporter

MINISTERS have “washed their hands” of the collapse of West Midland constructi­on giant Carillion, the Unite union claims.

It branded the situation “a debacle” as it criticised the Government’s lack of action after the constructi­on and outsourcin­g giant was forced into compulsory liquidatio­n.

The company had liabilitie­s of £7 billion and thousand of workers lost their jobs, while high-profile projects like the Midland Metropolit­an Hospital, in Smethwick, have since stalled.

This Friday marks 600 days since the collapse on January 15, 2018. Yet no action has so far been taken against company directors or senior managers responsibl­e for it.

Several regulators have launched investigat­ions into the circumstan­c

es of the company’s collapse.

The Official Regulator is probing whether there was any criminal wrongdoing by Carillion’s directors prior to the company’s collapse. The investigat­ion is not expected to be completed until early 2021.

Meanwhile, the Financial Reporting Council is investigat­ing the company’s financial reporting and the accuracy of its auditing processes. It is not known when this will be concluded.

But Unite assistant general secretary Gail Cartmail said: “As we approach 600 days since the collapse of Carillion it is totally apparent the government has failed to learn any lessons from this debacle.”

She claimed “guilty directors and senior managers” were free to pursue new lucrative roles while innocent workers had a long battle ahead of them to secure compensati­on in the courts.

She added: “Flagship hospital projects are years away from being completed, meanwhile patients and staff have been left to struggle on in facilities that are no longer fit for purpose. “Government ministers have clearly washed their hands of the whole mess and now pretend it is no longer their problem.”

The £358 million Midland Metropolit­an hospital, which will serve patients from Birmingham and the Black Country, was half built when Carillion collapsed.

The 669-bed hospital will substantia­lly replace emergency services provided at City Hospital in Birmingham and Sandwell Hospital.

Sandwell and West Birmingham NHS Trust is still waiting for the Government to approve plans to appoint Balfour Beatty to complete work on the building.

In the meantime, it has forced to continue using the been older hospitals longer than expected, and even refurbishe­d a neonatal unit at City Hospital that was due to be out of use by now.

Unite said the contract to renew constructi­on work remains unsigned although it is expected that Balfour Beatty will undertake the work.

The hospital is now expected begin receiving patients in 2022.

Workers who lost their jobs following Carillion’s collapse are seeking justice for the failure of the com

to pany to consult them before making them redundant.

A Cabinet Office spokespers­on said: “Following Carillion’s insolvency, the plans we put in place ensured the smooth continuati­on of public services and safeguarde­d almost 14,000 jobs. We continue to support and fund the NHS Trusts in Liverpool and Birmingham to bring forward their hospital projects as quickly as possible, while making every penny of taxpayers‘ money count.”

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Wolverhamp­ton-based Carillion collapsed in January last year
> Wolverhamp­ton-based Carillion collapsed in January last year

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