Carillion collapse: Small firms' support ends in 2 days

Share

Carillion - a major supplier of services to the United Kingdom government - was founded in 1999 and has since acquired a number of other companies, meaning that it is the ultimate sponsor for as many as 14 separate defined benefit pension schemes.

While at the despatch box, the newly anointed Cabinet Office minister was asked by BEIS committee chair Rachel Reeves why the former chief executive would still be paid hundreds of thousands of pounds until this autumn, despite having stepped down a year ago. The slip back was small, however, and the index is still hovering near its record.

He added: "As for those who have been employed by the Carillion group to deliver public service contracts, the government are continuing to pay their wages for the services delivered - those payments are being made through the official receiver instead of through Carillion".

Britain's second biggest construction firm, it had hundreds of government contracts to provide outsourced services, including maintenance of prisons, hospitals and army bases and providing school meals to children.

Carillion was also part-way through constructing a major new hospital in the Midlands when it announced it was entering liquidation.

He said they had fleeced the public of billions of pounds.

"In recent days, however, we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision, "Green said".

In 2016, the same year Carillion raked in more than 5 billion pounds' worth of revenue, its market capitalization - total dollar value of stock now held by investors around the world - hovered at a respectable, competitive 2 billion pounds.

In a tweet, he wrote: "2016 Carillion annual report says dividend "has increased in each of 16 years since formation of company"; Is this really acceptable alongside a pension fund deficit over half a billion pounds?" "Any evidence of misconduct will be taken very seriously".

Ex-Raiders head coach Tom Cable returns to club, reports say
Cable had been the Seahawks' offensive line coach and assistant head coach from 2011 until Wednesday, when he was sacked . The Raiders retained him after a 4-8 finish, and they went 5-11 and then 8-8 during the next two years of his tenure.

'In the meantime, we will continue investigating how to best proceed with the project. Those already receiving their pensions will continue to receive payment. "We need full transparency on meetings and discussions that took place between government ministers, civil servants and representatives of Carillion and what warnings were given to ministers and what actions recommended implemented or not".

The UK government, which is handling the liquidation process, has told Carillion employees to turn up to work, insisting "you will get paid".

HMG has big questions to answer.

The UK Government is now advising all Carillion employees to show up to work. 20,000 jobs & huge projects at stake!

Rail, Maritime and Transport union general secretary Mick Cash said: "The blame for this lies squarely with the Government who are obsessed with outsourcing key works to these high-risk private enterprises".

He said the government should think long and hard about the impact of Carillion's collapse on small and medium-sized suppliers. It provided facilities management services to everything from railways to libraries, benefiting from a massive expansion in privatisation of public services under successive governments since the 1990s. Govt must step in.

Minister for Cabinet Office, David Lidington, was keen to play down job losses.

It is also under investigation by the Financial Conduct Authority over the content of financial statements it issued before July's profit warning.

Share