Carillion Crisis - Page 3

**Damien** · 16-01-2018, 22:11

Maybe the Government should look into managing more of this projects themselves in the way TFL do. TFL subcontract out the actual physical work but they have much greater control of the projects themselves. The Government obviously shouldn't be directly involved with many of these tasks, hiring builders etc, but they shouldn't be so abstracted from them either.

This is another example of everything being handed off, there being probably decent evidence everyone knew for a while it was failing, but the government get to claim it's nothing to do with them. In the end the companies doing the manual work don't get paid, the staff lose their jobs and the public pick up the bill.

**Maggy** · 17-01-2018, 09:24

One off topic post removed.

denphone · 29-01-2018, 06:40

Carillion tried to 'wriggle out' of pension contributions.

http://www.bbc.co.uk/news/business-42853895

heero_yuy · 29-01-2018, 10:45

Aparently according to R4 business segment this morning they were paying dividends out to shareholders on the basis of anticipated revenues rather than actual profits. All sound very dodgy and the auditors KPMG are to be investigated.

Quote:

Originally Posted by

Reuters

The FRC said it would look at issues such as how the auditors recognised revenue on significant contracts and accounted for pensions.

The trustee of Carillion’s pension scheme said on Monday it may have a deficit of about 990 million pounds.

“The FRC is progressing with urgent enquiries into the conduct of professional accountants within Carillion,” the FRC said in a statement.

denphone · 31-01-2018, 13:45

Shares in UK government contractor Capita plunge 40% after profit warning.

Quote:

Shares in government contractor Capita plunged 40% after it issued a shock profits warning and suspended its dividend payments just weeks after the collapse of construction firm Carillion.

Quote:

David Madden, an analyst at CMC Markets, said the action from Capita was “a red alert” for investors, suggesting the company was struggling to cope with its debts.

https://www.theguardian.com/business...profit-warning

heero_yuy · 31-01-2018, 14:27

They're the outfit behind the knuckle draggers at TVL so I, for one, have very mixed feelings.

**Maggy** · 31-01-2018, 15:37

Quote:

Originally Posted by heero_yuy

Aparently according to R4 business segment this morning they were paying dividends out to shareholders on the basis of anticipated revenues rather than actual profits. All sound very dodgy and the auditors KPMG are to be investigated.

About time KPMG are investigated. They have a hell of a spotty record. How they haven't been done for fraudulent practices beats me.

denphone · 06-02-2018, 14:09

Carillion CFO says the supply chain let contractor down.

Quote:

Carillion’s former CFO Zafar Khan has told MPs that subcontractors had made it hard for the company to generate income.

Quote:

Out of the approximately £800m debt, he said £400m was linked to work in Canada and the Middle East.

Mr Cochrane said that a project in Qatar saw 2,500 design variations submitted and that Carillion was not paid by the client for 18 months prior to its collapse.

https://www.constructionnews.co.uk/c...027847.article

Too many fingers in too many pies and the consequences of it all are there for all to see.

Hom3r · 06-02-2018, 19:11

Why haven't the bosses had their assest frozen?

TBH they should all lose everything and given a 1 bedroom home which they need to rent.

denphone · 06-02-2018, 19:14

Frank Field summed it up succinctly when a string of senior directors from the Wolverhampton-based collapsed construction and infrastructure group Carillion appeared before two select committees at the Houses of Parliament today.

Quote:

“Pensioners are taking cuts, lots of people are not going to get paid for their contracts, other people have lost their jobs and you are still alright, all of you, aren’t you?”

https://www.birminghampost.co.uk/bus...ntary-14254821

heero_yuy · 06-02-2018, 19:17

Quote:

Quote from Hom3r:

Why haven't the bosses had their assets frozen?

TBH they should all lose everything and given a 1 bedroom home which they need to rent.

Whipped round the City mile wearing sackcloth and ashes.

No, they'll just present their day-glow credentials to the next organisation that they'll run into the deck.

richard s · 07-02-2018, 21:20

Classic case of really bad management from the very top. The directors should be held to account for this failler of the first degree.

Osem · 10-02-2018, 21:40

Quote:

Originally Posted by Hom3r

Why haven't the bosses had their assest frozen?

TBH they should all lose everything and given a 1 bedroom home which they need to rent.

Same reason certain inept/negligent/or worse public sector grandees seem to move from one highly paid post to another leaving a trail of failure behind them in their wake.

denphone · 11-02-2018, 06:14

Quote:

Originally Posted by Osem

Same reason certain inept/negligent/or worse public sector grandees seem to move from one highly paid post to another leaving a trail of failure behind them in their wake.

And gets a juicy golden handshake and gold plated pension when they slink off to their retirement homes way before everybody else retires.

denphone · 22-02-2018, 08:32

Carillion was in trouble by mid-2016, says whistleblower.

Quote:

“Anyone in the business knew there were major problems, even middle managers,” the former Carillion executive told the Guardian.

“The supply chain wasn’t being paid, money was getting transferred [between different parts of the group] to pay salaries, loans were coming in from the UK to the whole of the Middle East. By mid-2016 we were already seeing these problems.”

https://www.theguardian.com/business...-whistleblower