Tuesday, 16 January 2018

Investigation into collapse of construction giant Carillion will be fast-tracked and "extended in scope"



The government has ordered a fast-track investigation into directors at the failed construction firm Carillion.

 
The UK's second biggest construction firm went into liquidation on Monday, after running up losses on contracts and struggling with heavy debts.


The business secretary has asked for an investigation by the Official Receiver to be broadened and fast-tracked.


The conduct of directors in charge at the time of the company's failure and previous directors will be examined.


Carillion's business is now in the hands of the official receiver, which is reviewing all of Carillion's contracts. The company employed 43,000 people worldwide, 20,000 in the UK, and had 450 contracts with the UK government.
The government has said that staff and contractors working on public sector service contracts will continue to be paid. But there is concern that big projects, including the construction of hospitals and roads, will be delayed while the details are worked out.


There are also big worries for an estimated 30,000 smaller firms which have been working on Carillion projects in the private sector.


Many are owed money and face a wait to find out if they will get any of it back.




BBC      News.