COMMONS

Carillion former directors questioned on collapse

06 February 2018

The Work and Pensions and Business, Energy and Industrial Strategy Committees question Carillion's former directors. These include financial directors, and remuneration committee chair on the culture, governance, business model and operations of a company described by the FSB, representing tens of thousands of its suppliers, as a notorious late payer that was abusing its dominant market position.

Carillion's collapse

How could a company that was signed off by KPMG as a going concern in Spring 2017 crash into liquidation months later? As borrowing, liabilities and the pension deficit ballooned into the billions, were they working on the assumption that they were "too big to fail"?

The witnesses will be questioned on the foreseeability of collapse; their accounting practices; risky contracts; levels of borrowing; dividends, salary and bonus pay outs and the massive pension deficit, which increased massively over a ten year period while the company clearly treated its obligations to multiple pension schemes as subordinate to all other calls –dividends, bonuses, debt - on the business. 

Witnesses

Tuesday 6 February, Wilson Room, Portcullis House

At 9.15am

  • Keith Cochrane, CEO, 10 July 2017 – 15 January 2018 
  • Zafar Khan, CFO, 1 January 2017 – 11 September 2017
  • Emma Mercer, CFO, 11 September 2017 – 15 January 2018


At approximately 10.15am

  • Philip Green CBE, Chairman, May 2014 – January 2018
  • Richard Adam, Finance Director, April 2007 – December 2016
  • Richard Howson, Chief Executive, December 2009 – July 2017
  • Alison Horner, Chair of Remuneration Committee, December 2013 – January 2018

Further information

Image: iStockphoto

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