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Carillion: MPs reveal FD dumped shares

MPs looking into Carillion’s collapse have revealed that its former finance director Richard Adam “dumped” his shares at the “first possible moment”.

The comments come following the publication of two letters to the work and pensions select committee from former FDs Mr Adam and Zafar Khan.

Mr Adam’s response to the committee details his share activity, revealing that he sold the last of his remaining shares in Carillion on his retirement at the end of 2016.

Committee chair Frank Field suggested Mr Adam’s decision to sell amounted to “dumping” the last of his shares at the “first possible moment”.

Mr Field also attacked the evidence provided by Carillion executives at the MPs’ joint inquiry earlier this month.

The Labour MP accused Carillion board members of setting up “the hapless Zafar Khan” as the “fall guy” for the firm’s liquidation.

He added it was “not lost” on the committee that Mr Khan had inherited Carillion’s “mountain of debt”.

The letters both feature further explanations from the former finance bosses in relation to questions about the build-up to Carillion’s collapse.

In his letter to the committee, Mr Adam said he could only “speculate” on the reasons behind the firm’s collapse.

However, the former finance chief quoted a Daily Telegraph interview with Serco chief executive Rupert Soames from January speculating on the reasons for Carillion’s demise.

Mr Soames had suggested that Carillion’s insolvency may have been “because when counter-parties lost confidence, customers who owed money to Carillion stopped paying, and suppliers who they owed money to demanded immediate payment”.

He continued: “With costs running at some £500m a month, a balance sheet can evaporate in days.”

Mr Khan used his letter to once again stress the “supply chain difficulties” he believed had contributed to Carillion’s collapse.

The former FD said he recalled “specific issues with subcontractors not delivering in relation to the Royal Liverpool Hospital and Midland Metropolitan Hospital projects”.

Mr Khan added that “satisfactory performance of these contracts would have helped the company’s cashflow and net debt position”.

Last week KPMG told the Carillion inquiry it did not recognise the company’s £200m claim against a Qatari client and could not say whether Carillion owed the client money.

Network Rail also revealed that Amey had acquired the failed contractor’s contracts with the rail operator.

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