{"id":2111725,"date":"2026-05-12T20:25:21","date_gmt":"2026-05-12T19:25:21","guid":{"rendered":"https:\/\/www.thebusinessdesk.com\/westmidlands\/?p=2111725"},"modified":"2026-05-12T20:26:51","modified_gmt":"2026-05-12T19:26:51","slug":"carillion-collapse-reaches-final-chapter-as-watchdog-hands-out-fresh-sanctions","status":"publish","type":"post","link":"https:\/\/www.thebusinessdesk.com\/westmidlands\/news\/2111725-carillion-collapse-reaches-final-chapter-as-watchdog-hands-out-fresh-sanctions","title":{"rendered":"Carillion collapse reaches final chapter as watchdog hands out fresh sanctions"},"content":{"rendered":"

Regulatory action linked to the collapse of Carillion has moved closer to its conclusion, with the Financial Reporting Council (FRC) issuing new penalties against two of the contractor\u2019s former finance directors.<\/p>\n

The latest sanctions relate to Richard Adam, Carillion\u2019s finance director between 2007 and 2016, and his successor Zafar Khan, marking one of the final major outcomes in a long-running series of investigations following the contractor\u2019s collapse in January 2018.<\/p>\n

The FRC said both men acted \u201crecklessly\u201d and failed to demonstrate integrity in relation to the preparation of accounting information used in Carillion\u2019s financial reporting before the business entered liquidation.<\/p>\n

Richard Adam was fined \u00a3550,000 and excluded from the accountancy profession for 15 years. The financial penalty was reduced to \u00a3222,019 after taking into account a separate fine previously imposed by the Financial Conduct Authority (FCA) earlier this year.<\/p>\n

\"\"

Richard Howson (left), Richard Adam (top right) and Zafar Khan<\/p><\/div>\n

Zafar Khan received a 10-year exclusion from the profession alongside a \u00a3225,000 fine, which was reduced to \u00a360,228 following earlier FCA action.<\/p>\n

The regulator also sanctioned three unnamed senior accountants involved in the case, issuing fines of \u00a340,000 each and banning them from the profession for periods ranging from two to eight years.<\/p>\n

Penrose Foss, executive counsel, executive director of investigations and enforcement said: \u201cIt is critical that any individual who is responsible for preparing accurate financial information, whatever their level of seniority, undertakes their duties with integrity. This is a fundamental requirement for every organisation.\u00a0 For a large publicly listed company, the consequences of failing to meet this requirement can be wide-ranging, affecting investors suppliers, employees, and the many communities served by an organisation across the UK and beyond.<\/p>\n

“In this case, there was a sustained failure by Mr Adam in his role as Group Finance Director, and by his successor Mr Khan over a shorter period, to act with integrity and ensure the accuracy of financial information relating to several business areas significant in Carillion\u2019s financial reporting.\u00a0 The FRC has also secured admissions from three further individuals.<\/p>\n

“The substantial sanctions imposed on these five individuals reflect the gravity of their failure to discharge their respective obligations to act with integrity in preparing financial information in the context of a large, listed company.\u201d<\/p>\n

The latest penalties follow a series of separate actions taken against former Carillion executives over recent years.<\/p>\n

Earlier in 2026, former chief executive Richard Howson was fined more than \u00a3230,000 by the FCA over misleading market statements issued before the collapse.<\/p>\n

He had already been banned from serving as a company director for eight years by the Insolvency Service in 2023.<\/p>\n

Investigations into the company\u2019s financial reporting uncovered significant issues linked to major contracts, including the Battersea Power Station residential development in London, where one phase of the project was reportedly bid at a 0% profit margin.<\/p>\n

Carillion triggered shockwaves across the construction and outsourcing sectors in July 2017 after announcing an \u00a3845m provision linked largely to underperforming contracts. The scale of the write-down effectively erased several years of profits and accelerated the company\u2019s eventual collapse months later.<\/p>\n

The failure of Carillion remains one of the UK\u2019s most high-profile corporate collapses, prompting widespread scrutiny of auditing standards, financial oversight and governance practices across the construction and outsourcing industries.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fresh sanctions against two former finance directors bring one of the UK\u2019s biggest corporate collapses back into focus more than eight years on<\/p>\n","protected":false},"author":266702,"featured_media":2111726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120902],"coauthors":[127717],"class_list":["post-2111725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-greater-birmingham","tag-top-story"],"yoast_head":"\nCarillion collapse reaches final chapter as watchdog hands out fresh sanctions | TheBusinessDesk.com<\/title>\n<meta name=\"description\" content=\"Fresh sanctions against two former finance directors bring one of the UK\u2019s biggest corporate collapses back into focus more than eight years on\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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