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Ex-Carillion bosses ‘quizzed in government probe’

The former bosses of Carillion were among hundreds of witnesses called in for questioning by the Insolvency Service, according to a report in Sky News.

The broadcaster claims ex-chief executive Richard Howson (pictured) and former chairman Philip Green were quizzed last month as part of the Insolvency Service’s investigation into the actions of the contractor’s directors.

Business secretary Greg Clark intervened to fast-track the Insolvency Service’s probe in the aftermath of Carillion’s liquidation.

It is one of three open regulatory inquiries into the firm’s demise.

The Financial Reporting Council (FRC) is investigating the contractor’s former finance directors Richard Adam and Zafar Khan alongside the financial audits carried out by KPMG between 2014 and 2017.

It said in the summer its lawyers and accountants were making “good progress”, but would not “cut corners” to speed up the probe.

The Financial Conduct Authority (FCA) were already investigating Carillion trading updates before Carillion’s collapse.

Since the liquidation the FCA has revealed it is considering “allegations of insider trading” as part of its enquiries.

In September Kier boss Haydn Mursell told CN the construction sector had been under greater scrutiny from regulators following Carillion’s liquidation.

A spokesperson for the Official Receiver said: “As part of the ongoing enquiries into the collapse of Carillion, we will be speaking to those individuals who were directors at the date of liquidation, as well as former directors, to assist with the investigation.”

Readers' comments (2)

  • Given the difficulties and catastrophic collapse of Carillion, the directors must bear some responsibility for failing to take prompt action. It must have been very evident that the company was bordering on insolvency for some time. Consequently either the directors failed to manage the company and/or they failed to keep adequate accounting records. In fact many of its clients saw the tell tale signs of financial difficulties in terms of poor performance months before their demise. An additional questioning finger here needs pointing at KPMG in terms of audit quality. Also a dishonourable mention for the Cabinet Office who were putting pressure on Carillion’s Public Sector clients against awarding work to the company right up to the last.

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  • And still Carillion’s PI insurers are able to stay out of the limelight........but for how much longer? Somebody, somewhere, somehow, has to be the beneficiary of such cover.......surely?
    Otherwise what is the point of entities being burdened with paying for PI cover all over the industry at different levels and tiers - or is it just tears?

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