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

Environment Officer

Kirklees Metropolitan Council
£29,909 – £32,233 Grade 11 - £33,136 - £35,229
All Environment Officers lead, project manage and/or co-ordinate large environmental projects... Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council

MCA Hub Co-ordinator

Camden London Borough Council
£40,028 - £46,431
You will lead on the co-ordination of the North and Central Area Mayor’s Construction Academy (MCA) Hub. London (Greater)
Recuriter: Camden London Borough Council

Highways Estimator

Ringway
Competitive Salary
As the Highways Estimator you will join a busy environment and become an integral part of the team. Hounslow (London Borough), London (Greater)
Recuriter: Ringway

County Highways Manager

Lincolnshire County Council
£55,503 - £60,578
Seeking a highly motivated leader and an excellent communicator, who has a proven ability to build relationships and trust, leading by example. Lincolnshire
Recuriter: Lincolnshire County Council

Local Highways Manager (East) - Lincolnshire County Council

Lincolnshire County Council
G12 £43,662 - £50,430
Seeking someone who combines excellent technical knowledge with a dedication to the customer. Lincolnshire
Recuriter: Lincolnshire County Council

Assistant Director (Planning, Regeneration & Transport)

Rotherham Metropolitan Borough Council
£87,791 per annum  
This is an exciting time to join Rotherham and make a real difference. We are looking for an outstanding Assistant Director who will bring... Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Corporate Director

Islington London Borough Council
Up to £135k
You will share our values and be passionate about helping us shape the Islington of the future. Islington, London (Greater)
Recuriter: Islington London Borough Council

Assistant Engineer

Cambridgeshire County Council
£21,074 - £30,756
Looking for strong team players interested in working with a variety of professional and community partners across Cambridgeshire. Cambridgeshire
Recuriter: Cambridgeshire County Council

Junior Energy Manager Apprentice

Brent Council
£15,000 p.a. inc.
The right person for this job will be pro-active and innovative in finding a way forward. Wembley, London (Greater)
Recuriter: Brent Council

Career Grade Drainage Engineer

Swindon Borough Council
£19,092 to £40,680 p.a
Working in the asset management team, you’ll support the work of the Lead Local Flood Authority (LLFA) and Highways Authority. Swindon, Wiltshire
Recuriter: Swindon Borough Council

Highway Construction Project Manager

Brent Council
£50,442 - £53,526 p.a. inc.
We are looking for an accomplished highway construction project manager to support the delivery of two high priority highway schemes. Brent, London (Greater)
Recuriter: Brent Council

Traffic Signals & UTMC Manager

Bristol City Council
£42,683 - £45,591
Looking for someone with proven management experience, enthusiasm, creativity, vision and good communication skills. City of Bristol
Recuriter: Bristol City Council

Principal Highways Project Engineer

Knowsley Metropolitan Borough Council
£34,106 - £35,229 per annum
The post holder will be responsible for project managing the delivery of two highway projects on the Key Route Network. Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Traffic Schemes Officer

Oxfordshire County Council
£22,021 - £29,636 per annum
An exciting opportunity has arisen to play a central role with the Traffic Team in the maintenance of the highway network... Kidlington, Oxfordshire
Recuriter: Oxfordshire County Council

Traffic Engineer

Telford & Wrekin Council
£29,055 to £30,756
This is an exciting opportunity to join Telford & Wrekin Council’s Traffic Management Team! Telford, Shropshire
Recuriter: Telford & Wrekin Council

Assistant Engineer – Traffic Regulation

Telford & Wrekin Council
£23,866 to £25,463
This is an exciting opportunity to join Telford & Wrekin Council’s Traffic Management Team. Telford, Shropshire
Recuriter: Telford & Wrekin Council

Highways Quantity Surveyor

Leicester City Council
£30,756 - £33,136 pro-rata per annum
Working in the Highways Maintenance Group, you will be responsible for the operational highway maintenance activities Leicester, Leicestershire
Recuriter: Leicester City Council

Highways Engineer/Inspector

Royal Borough of Greenwich
£22956 - £32637 per annum
Highways Engineer/Inspector - PermanentThere are plenty of reasons to take a closer look at Royal Greenwich.Royal Greenwich is undergoing a huge trans England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Engineer - Bridges

Cambridgeshire County Council
£32,825 - £35,401
We have a vacancy for a Structures Engineer working within the Bridge’s team! Cambridgeshire
Recuriter: Cambridgeshire County Council

Engineer

Cambridgeshire County Council
£32,825 - £35,401
You will be required to lead the delivery of a wide range of highway improvements and maintenance projects... Cambridgeshire
Recuriter: Cambridgeshire County Council

Download your Highways App

Google App Apple App

Highways on Fridays

Latest Issue

latest magazine issue

Includes:

  • The view from the regions
  • Essential Brexit analysis
  • Traffex and Parkex preview
View the latest issue

Latest Video