Carillion: MPs slam Government, directors and auditors

16/05/2018
Chris Ames

MPs have accused the Government of lacking ‘the decisiveness or bravery’ to address the failures in corporate regulation that allowed Carillion to collapse as a result of the ‘recklessness, hubris and greed’ of its directors.

In the final report of their joint inquiry into the insolvency of the infrastructure and outsourcing giant, the Work and Pensions and BEIS committees have called on ministers to carry out an ‘ambitious and wide-ranging set of reforms’ to the system of corporate accountability.

However, MPs said Carillion’s board was both ‘responsible and culpable for the company’s failure’, presiding over a ‘rotten corporate culture’ that led to its failure.

They said that despite clear accountability, the directors presented themselves to their inquiry as ‘self-pitying victims of a maelstrom of coincidental and unforeseeable mishaps’.

They added that Carillion's rise and spectacular fall was a story of ‘recklessness, hubris and greed’, with at best questionable accounting practices that ‘misrepresented the reality of the business’.

MPs said the Insolvency Service should carefully consider whether Carillion’s former directors breached their duties under the Companies Act and should be recommended for disqualification.

Frank Field MP, chair of the Work and Pensions Committee, said: ‘They rightly face investigation of their fitness to run a company again. This is a disgraceful example of how much of our capitalism is allowed to operate, waved through by a cosy club of auditors, conflicted at every turn.

‘Government urgently needs to come to Parliament with radical reforms to our creaking system of corporate accountability. British industry is too important to be left in the hands of the likes of the shysters at the top of Carillion.’

Rachel Reeves MP, chair of the BEIS Committee, called for the Competition and Markets Authority to consider breaking up the big four accountancy firms.

She said: ‘Carillion’s collapse was a disaster for all those who lost their jobs and the small businesses, contractors and suppliers left fighting for survival. The company’s delusional directors drove Carillion off a cliff and then tried to blame everyone but themselves. Their colossal failure as managers meant they effectively pressed the self-destruct button on the company.

‘However, the auditors should also be in the dock for this catastrophic crash. They are guilty of failing to tackle the crisis at Carillion, failing to insist the company paint a true picture of its crippling financial problems. The sorry saga of Carillion is further evidence that the big four accountancy firms are prioritising their own profits ahead of good governance at the companies they are supposed to be putting under the microscope.

‘The collapse of Carillion exposed terrible failures of regulation. The Government needs to stop dithering and act to ensure regulators are up to the job of intervening before companies fail, rather than trying to pick up the pieces when it is too late.’

In its most recent update earlier this week, the Official Receiver said that in total, 2,301 jobs have been made redundant through the liquidation, although 11,618 jobs have been saved and a further 1,103 employees have left the business through finding new work, retirement or for other reasons.

 

 

Highways jobs

Environmental Improvement Officer

Sandwell Metropolitan Borough Council
£29,636 - £33,799 per annum
We have an exciting opportunity to recruit to the position of Environmental Improvement Officer within Regulatory Services. Sandwell, West Midlands
Recruiter: Sandwell Metropolitan Borough Council

Legal Officer - Planning and Highways

Kirklees Metropolitan Council
£26,999 - £29,636
Kirklees Legal Services is one of the largest legal practices in the area and carries out and commissions legal work required by the Council Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Environmental Cleansing Operative

Royal Borough of Greenwich
£20.466 - £20.835
This is an exciting opportunity to be part of a dynamic team of staff responsible for the cleanliness and general maintenance of a wide range of... Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Road Safety Engineer / Road Safety Auditor (all levels of experience)

TMS Consultancy
By negotiation
Purpose of the Job Depending on individual experience, candidates will be involved in a range of road safety engineering and traffic management pro... Coventry
Recruiter: TMS Consultancy

Senior Technical Officer

Newport City Council
£30,507 - £33,799
We are pleased to be seeking individuals to fill a new Senior Technical Officer post within Highways.    Newport (Casnewydd)
Recruiter: Newport City Council

Senior Technical Officer

Kirklees Metropolitan Council
£24,799 - £29,636
The successful candidate will feed into the planning process, assessing applications in accordance with the... Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Technical Support Officer

Royal Borough of Greenwich
£21.591 - £25.809
Using your administrative and communication skills to the full, you’ll provide invaluable support across our busy Directorate.  Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Assistant Tree Officer

Camden London Borough Council
£25,880 - £27,904
Looking for an assistant tree officer to join a busy Tree Section working with the most up to date arboriculture equipment’s and IT resources.   Camden, London (Greater)
Recruiter: Camden London Borough Council

Contract Monitoring Officer (Streets and Grounds)

Wiltshire Council
£24,313 - £26,317 per annum
This is an interesting and varied role involving inspecting and monitoring the condition of the highway Wiltshire
Recruiter: Wiltshire Council

Green Space Partnership Officer

Camden London Borough Council
£30,066 - £34,538
You will have excellent written and presentation skills including experience of preparation of reports, briefings, minutes of meetings and... Camden, London (Greater)
Recruiter: Camden London Borough Council

Sustainability Officer

Camden London Borough Council
£33,122 - £38,423
Looking for two Sustainability Officers to work across the Sustainability, Air Quality and Energy team to create, manage and... Camden, London (Greater)
Recruiter: Camden London Borough Council

Parking Projects Manager

Brent Council
£45,585 - £48,482 p.a. inc.
As Parking Projects Manager, you will be responsible for leading the delivery, to time and budget, of key parking projects... Wembley, London (Greater)
Recruiter: Brent Council

Parking Operations Officer

Kirklees Metropolitan Council
£19,554 - £21,166
Are you a hard-working individual, who enjoys working outdoors in all weather conditions? Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Team Leader (Local Plan)

City of Bradford MDC
£40,760 - £43,662 pa
The post requires a degree and eligible to be a corporate member of Royal Town Planning Institute and NVQ Level 5 in Management or... Bradford, West Yorkshire
Recruiter: City of Bradford MDC

Team Leader (Infrastructure & Local Plan Implementation)

City of Bradford MDC
£42,683 pa - £45,591 pa
The Post provides an exciting opportunity to manage a multidisciplinary team of professionals leading on Transport planning and Local Plan Bradford, West Yorkshire
Recruiter: City of Bradford MDC

Environmental Health Officer

Camden London Borough Council
£32,473 - £42,490
Seeking Environmental Health Officers to contribute towards delivering the project objectives of addressing rogue landlords and... Camden, London (Greater)
Recruiter: Camden London Borough Council

Road Safety and Sustainable Transport Assistant

Telford & Wrekin Council
SCP 13-17 - £11.41 - £12.35
Exciting opportunity to join Telford & Wrekin Council’s Highways, Transport & Engineering, Road Safety & Sustainable Transport Team. Telford, Shropshire
Recruiter: Telford & Wrekin Council

Project Assistant

Kirklees Metropolitan Council
£26,999 - £29,636
Looking for an additional team member to support the Senior Environmental Health Officers in undertaking complex Air Quality Improvement Projects... Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Principal Road Safety Officer

Royal Borough of Greenwich
£42684 - £45585 per annum
We are looking a fantastic new road safety expert to lead our high performing and innovative Road Safety Team.The Royal Borough of Greenwich is commit England, London, Woolwich
Recruiter: Royal Borough of Greenwich

Principal Development Co-ordinator

Gloucestershire County Council
£33,799.00 - £38,813.00 plus 12% supplement*
Looking for those who will quickly understand the Gloucestershire context and can display their expertise and... Gloucestershire
Recruiter: Gloucestershire County Council

Highways on Fridays

Latest Issue

latest magazine issue
  • Highways England at Westminster
  • Traffex Scotland and Bridges Scotland guide
  • Highways Awards winners
View the latest issue

Latest Video