Carillion directors to be investigated

By Pete Madeley | Wolverhampton | Politics | Published:

The Government has ordered a fast-track investigation into directors at the failed construction firm Carillion.

Greg Clark

Business Secretary Greg Clark has asked for an investigation by the Official Receiver to be broadened, with the conduct of directors in charge at the time of company's failure – and previous directors – to be examined.

"It is important we quickly get the full picture of the events which caused Carillion to enter liquidation," he said in a Commons statement.

"Any evidence of misconduct will be taken very seriously," he added.

Carillion has been hit by cost overruns on a number of big projects in recent years, as well as problems with contracts in the Middle East and a large deficit in the company pension scheme.

The problematic schemes include the £350m Midland Metropolitan Hospital in Sandwell, which has seen its opening delayed to 2019 due to construction problems.

Chief executive Richard Howson stepped down in July last year after a profit warning. He had been in charge since the end of 2011.

The role of Carillion's auditor KPMG will be examined by the Financial Reporting Council.

Pete Madeley

By Pete Madeley

Political Editor for the Express & Star. Responsible for local and national political stories, opinion, comment and analysis.


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