Insolvency Service ramping up Carillion investigation

The Insolvency Service has announced that the liquidation trading period for Carillion has now ended, and that it is moving forward in its investigation into the reasons for the collapsed outsourcer’s insolvency

The Official Receiver, Dave Chapman, said the investigation into the cause of the company’s failure, including the conduct of its directors, is underway now that the last of 278 contracts provided by the Carillion group has been transitioned to new service providers.

Chapman said: ‘Carillion is the largest ever trading liquidation in the UK. The continued uninterrupted delivery of essential public services since the company’s collapse in January reflects the significant effort put in by its employees, supported by my team and those employed by the special managers.

‘The focus of the liquidation will now shift to the provision of limited transitional services for some suppliers and finalising Carillion’s trading accounts to ensure that payment is made to suppliers who have provided goods and services to the various liquidations. Suppliers are asked to ensure they supply their final accounts as soon as possible.’

Chapman said his investigation into the causes of the failure of the company, which was a key supplier to government, ‘has wide-ranging powers to obtain information, material, and explanations.’

Close to 14,000 jobs have been transferred to new suppliers, representing 76% of the pre-liquidation workforce, while there have been 2,787 redundancies (15%). A further 1,272 employees have left the business during the liquidation through finding new work, retirement or for other reasons and around 240 core employees are currently being retained to help close out the remaining activities.

Carillion’s directors were branded ‘delusional’ by a joint work and pensions and BEIS select committee examining the company’s collapse, with auditors KPMG accused of ‘complacently signing off its directors’ increasingly fantastical figures’.

Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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