Carillion directors to be grilled by MPs over company’s collapse

Senior executives from construction group Carillion were set for a grilling from MPs today over their handling of the business in the months leading up to its dramatic collapse last month.

Former chief executive Richard Howson, who quit his post in July when the group issued the first of a series of profit warnings which ultimately lead to its demise, will appear before the joint Work and Pensions and Business, Energy and Industrial Strategy committee.

Also summoned to appear are chairman Phillip Green, finance directors Richard Adam, who left the company in December, Zafar Khan and Emma Mercer. Keith Cochrane, who had been acting as interim chief executive following Mr Howson’s departure, has also been called to give evidence.

The hearing is likely to be an ordeal for the executives, who have been heavily criticised for what happened to the business and for the resultant impact on its former employees and their pensions, as well as to Carillion’s ongoing contracts and the numerous firms entangled in its complicated supply chain.

Their appearance coincides with a further wave of redundancies.

The Official Receiver, which is handling the aftermath of the firm’s liquidation, said that while 100 jobs had been saved, a further 450 people were being made redundant after efforts to save their jobs failed.

“As part of the ongoing liquidation of the Carillion group, we have reviewed additional public and private sector contracts, as well as core divisions of the business,” said the OR in a statement.

“We can confirm that we have safeguarded a further 100 jobs and these roles are linked to public sector contracts. Most staff will be transferring on existing or similar terms, something I will continue to facilitate wherever possible as we work to find new providers for Carillion’s remaining contracts.

“Unfortunately, 452 posts are being made redundant. They cover a variety of roles connected with private and public contracts across different parts of the country, as well as back-office functions.”

The OR said efforts to ensure the smooth transfer of Carillion’s contracts to new providers was continuing and it would keep Carillion’s workforce updated as these arrangements were finalised.