Carillion: Government orders investigation into directors' conduct

  • The government has fast-tracked an investigation into the directors at failed construction giant Carillion.

LONDON – The government ordered a “fast-tracked” investigation into the conduct of directors at failed construction giant Carillion.

The construction firm was one of the government’s biggest contractors until it collapsed into liquidation on Monday after it ran up huge losses on contracts and battled heavy debts.

READ MORE: Crisis-hit construction firm Carillion goes into liquidation

“It is important we quickly get the full picture of the events which caused Carillion to enter liquidation, which is why I have asked the insolvency service to fast-track and broaden the scope of the Official Receiver’s investigation,” said business secretary Greg Clark in a statement.

“In particular, I have asked that the investigation looks not only at the conduct of the directors at the point of its insolvency, but also of any individuals who were previously directors. Any evidence of misconduct will be taken very seriously.”

Directors and board members at Carillion were accused of “shameful” conduct after they secured a collective £4 million in bonuses last year even as the firm issued alarming profit warnings.

The role of Carillion’s auditor KPMG will also be examined by the Financial Reporting Council.

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