{"id":2011,"date":"2019-01-14T08:02:04","date_gmt":"2019-01-14T08:02:04","guid":{"rendered":"https:\/\/cita.co.uk\/news\/?p=2011"},"modified":"2019-01-14T08:02:04","modified_gmt":"2019-01-14T08:02:04","slug":"calls-grow-for-carillion-action-one-year-after-collapse","status":"publish","type":"post","link":"https:\/\/cita.co.uk\/news\/calls-grow-for-carillion-action-one-year-after-collapse\/","title":{"rendered":"Calls grow for Carillion action one year after collapse"},"content":{"rendered":"

The collapse of construction giant Carillion should be subject to a criminal investigation.<\/p>\n

That is the call from union Unite, which has accused the government of not taking enough action to ensure there is not another \u201ccorporate meltdown\u201d on the first anniversary of the group going out of business.<\/p>\n

Despite the scale of Carillion\u2019s collapse no action has yet been taken or recommended against any of Carillion\u2019s directors or senior managers.<\/p>\n

This is despite longstanding investigations by the regulator into accountants and auditors, the Financial Reporting Council and the Insolvency Service.<\/p>\n

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The Government’s pension regulator has also failed to deliver any recommendations from its investigation into the \u00a3800m shortfall left in the firm’s pension, which leaves thousands of former employees out of pocket.<\/p>\n

So far the Government has only come up with a pilot policy to require major outsourcing companies with public sector contracts in financial difficulties to produce a \u2018living will\u2019 detailing how services can continue to be run following a company\u2019s demise.<\/p>\n

The delay in action has led Unite to call for an immediate criminal investigation into Carillion\u2019s collapse.<\/p>\n

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Unite assistant general secretary Gail Cartmail: \u201cIt is staggering that a year after the biggest corporate failure in modern UK history the government has carried on as though it is business as normal.<\/p>\n

\u201cThe government\u2019s failure to take action to ensure that there cannot be similar collapses in the future is a betrayal of workers, who still face being cast on the scrapheap without warning because of irresponsible directors who place profits and shareholder dividends before people.<\/p>\n

\u201cThe fact that no one involved in Carillion has yet had any form of action taken against them, demonstrates either that the regulators are failing to do their jobs or that existing laws are too weak. If it is the latter then we need better stronger laws.”<\/p>\n

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She aded: \u201cA year on from Carillion\u2019s collapse the government needs to stop prevaricating and start taking effective action.\u201d<\/p>\n

Carillion went into compulsory liquidation on 15 January 2018, with a reported \u00a37bn of liabilities and just \u00a329m left in the bank.<\/p>\n

Experts believe that Carillion could have been trading while insolvent for several years prior to its collapse.<\/p>\n

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As a result of the company\u2019s collapse nearly 3,000 of Carillion\u2019s staff were made redundant with many other workers in the company\u2019s supply chain also losing their jobs. Many of Carillion\u2019s sub-contractors were also forced out of business.<\/p>\n

So far \u00a350m has been paid to accountants PwC to act as \u2018special managers\u2019 to break up the company. A further \u00a365m has been paid out to make workers redundant and smooth the transfer of outsourced contracts to new providers.<\/p>\n

The extra final bill for its two flagship construction projects the Royal Liverpool hospital and the Midland Metropolitan hospital has yet to be quatified although much of the financial hit has been shouldered by the financiers of the PFI schemes.<\/p>\n

The cost of both projects has now rocketed and both hospitals will be at least three years late before they are operational.<\/p>\n

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from Construction Enquirer http:\/\/bit.ly\/2RKHwGJ<\/p>\n","protected":false},"excerpt":{"rendered":"

The collapse of construction giant Carillion should be subject to a criminal investigation. That is the call from union Unite, which has accused the government of not taking enough action to ensure there is not another \u201ccorporate meltdown\u201d on the first anniversary of the group going out of business. Despite the scale of Carillion\u2019s collapse […]<\/p>\n","protected":false},"author":1,"featured_media":151,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[9],"class_list":["post-2011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-construction-enquirer"],"_links":{"self":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/2011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/comments?post=2011"}],"version-history":[{"count":1,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/2011\/revisions"}],"predecessor-version":[{"id":2012,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/2011\/revisions\/2012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media\/153"}],"wp:attachment":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media?parent=2011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/categories?post=2011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/tags?post=2011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}