Hundreds more Carillion jobs lost

A further 230 former Carillion workers have lost their jobs after becoming surplus to requirements following the transfer of contracts previously managed by the group.

However, the Official Receiver had better news for 456 workers, who have all had their jobs safeguarded after contracts in both the public and private sectors were transferred to new suppliers.

“Over 8,000 of Carillion’s workforce have now been placed into secure jobs. I am continuing to facilitate the transfer of employees on existing or similar terms wherever possible,” said the OR in a statement.

“Unfortunately, as the liquidation proceeds some roles supporting contracts that have transferred are no longer required. As a result, 230 employees have been declared redundant and will leave the business later this week.”

Discussions with potential purchasers are continuing and the OR said he was hopeful that further jobs would be secured.

To date, 8,066 jobs have been saved and 1,371 jobs have been lost.

Approximately 8,000 employees have been retained to enable Carillion to deliver the remaining services it is providing for public and private sector customers until decisions are taken to transfer or cease these contracts.

The announcement came as MPs holding an inquiry into the Wolverhampton group’s collapse revealed Carillion’s former finance director, Richard Adam, made more than £770,000 by selling off his shares following his retirement from the company.

The joint Work and Pensions and Treasury committee said Mr Adam retired from the business on December 31, 2016.

On March 1, 2017 he sold his entire existing shareholding for £534,000, including performance awards for 2013-2015 of £277,000 which vested on his retirement.

He then sold his long term incentive plan awards for 2014 on May 8, 2017 – the day they vested – for £242,000.

The shares are now worthless.

Mr Adam told the joint committee during a public session earlier this month that he had sold his shares when he was entitled.

His successor as FD, Zafar Khan, had his contract terminated after just eight months in the job, on September 8, 2017, having – in the committee’s words – “spooked” the Carillion’s board with a financial update a few days earlier that showed there had been a further decline in the company’s position since the disastrous £845m writedown announcement the previous July.

Frank Field, co-chair of the committee, said: “Mr Adam presided over Carillion’s finances for a decade. He, more than anyone else, ought to know the merits of Carillion shares as a long term investment in the light of his lengthy and lucrative tenure.

“His assessment? Dumping the last of his shares at the first possible moment because he is – with his own money at least – ‘risk averse’. What conclusions are we to draw from that?

“The other directors appear keen to set up the hapless Zafar Khan as the fall guy for the collapse. It is not lost on us, however, that he inherited Carillion’s mountain of debt.”

On his retirement in at the end of 2016, Mr Adam’s said his shareholding was 122,014 shares. He was also provisionally entitled to 93,472 shares as part of bonus schemes for 2013, 14 and 15. These vested when he left the company on December 31, 2016. He was also entitled to shares through the firm’s Leadership Equity Award Plans, although 450,144 will not vest and were forfeited due to the company’s liquidation.

In a letter to the co-chairs of the committee he said: “My shareholding, as well as the shares that vested on or around my retirement were sold on March 1, 2017 and the shares that vested on May 8, 2017 were sold on the date they vested.

“I sold the shares on these dates because they were the days that I was invited to do so by the company.”

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