Union condemns ‘debacle’ as no action is taken against bosses following collapse
Ministers ‘washed hands’ of Carillion
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.”