{"id":14837,"date":"2018-03-20T16:08:31","date_gmt":"2018-03-20T16:08:31","guid":{"rendered":"http:\/\/unitelive.org\/?p=14837"},"modified":"2020-11-12T12:59:06","modified_gmt":"2020-11-12T12:59:06","slug":"responsible-must-held-account","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=14837","title":{"rendered":"‘Responsible must be held to account’"},"content":{"rendered":"
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Two of Carillion\u00e2\u20ac\u2122s former finance chiefs are to be investigated by the UK\u00e2\u20ac\u2122s accounting watchdog for their roles in the firm\u00e2\u20ac\u2122s spectacular implosion.<\/p>\n

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Unite welcomed the move, but said the sheer scale of the scandal, which encompasses the company\u00e2\u20ac\u2122s leadership<\/a>, the government, the pensions regulator and accountancy firm KPMG, necessitates a full public inquiry.<\/p>\n

 <\/p>\n

Richard Adam and Zafar Khan were both group finance directors at the failed firm, which collapsed in January putting 30,000 jobs at risk.<\/p>\n

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The investigation<\/a> by the Financial Reporting Council (FRC), which is also conducting a separate enquiry into KPMG\u00e2\u20ac\u2122s role in the scandal, will look at the pair\u00e2\u20ac\u2122s involvement in preparing and approving Carillion\u00e2\u20ac\u2122s financial statements from 2014 to 2017.<\/p>\n

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Adam and King, along with other senior Carillion<\/a> executives, have previously been grilled by MPs looking into the construction firm\u00e2\u20ac\u2122s collapse.<\/p>\n

 <\/p>\n

MPs accused Adam of immediately dumping shares after he left the company in early 2017. Adam sold \u00c2\u0141776,000 of shares as soon as he qualified for them following his departure in December 2016.<\/p>\n

 <\/p>\n

Khan, who replaced Adam, left the firm just four months before it collapsed with a \u00c2\u0141425,000 pay-off.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u0098Aggressively managed\u00e2\u20ac\u2122 <\/em><\/strong><\/p>\n

This month MPs released an internal report commissioned by Carillion\u00e2\u20ac\u2122s board in 2017, that stated the firm had \u00e2\u20ac\u015baggressively managed\u00e2\u20ac\u0165 its balance sheet to give the impression its accounts were healthier.<\/p>\n

 <\/p>\n

Carillion\u00e2\u20ac\u2122s bosses have also been accused of borrowing money to pay shareholders and executives, even as the firm was heading for the rocks.<\/p>\n

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Meanwhile it emerged that the government was informed of a plan to retrieve more than \u00c2\u0141360m from\u00c2\u00a0Carillion\u00c2\u00a0\u00e2\u20ac\u201c helping to shield the public purse from the cost of the firm\u00e2\u20ac\u2122s collapse and preventing losses to workers\u00e2\u20ac\u2122 pensions \u00e2\u20ac\u201c but refused to pressure directors into implementing it<\/a>.<\/p>\n

 <\/p>\n

Along with the FRC, the Financial Conduct Authority and two parliamentary select committees are also investigating why and how Carillion collapsed.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bWhile Unite welcomes investigations into all those who were responsible for Carillion\u00e2\u20ac\u2122s downfall, the sheer numbers of those involved in the scandal means a full public inquiry is necessary to bring all the strands together,\u00e2\u20ac\u0165 Unite assistant general secretary Gail Cartmail said.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThere was clearly something deeply wrong with the outsourcing business model Carillion was based on and the reckless culture it engendered.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThe government, the pensions regulator, the supposedly independent accountancy firm KPMG and Carillion\u00e2\u20ac\u2122s disgraced leadership are all implicated.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThose who are responsible must be held to account and just as importantly the systemic causes of this disaster must be uncovered and prevented from ever happening again.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Two of Carillion\u00e2\u20ac\u2122s former finance chiefs are to be investigated by the UK\u00e2\u20ac\u2122s accounting watchdog for their roles in the firm\u00e2\u20ac\u2122s spectacular implosion.   Unite welcomed the move, but said the sheer scale of the scandal, which encompasses the company\u00e2\u20ac\u2122s leadership, the government, the pensions regulator and accountancy firm KPMG, necessitates a full public inquiry. […]<\/p>\n","protected":false},"author":2,"featured_media":14458,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[855,167,44],"wps_subtitle":"Carillion chiefs to be probed","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/14837"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14837"}],"version-history":[{"count":3,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/14837\/revisions"}],"predecessor-version":[{"id":26323,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/14837\/revisions\/26323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/14458"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}