Business Secretary outlines departmental action following Carillion liquidation
The business department sets out the steps being taken following Carillion鈥檚 liquidation.
- Business Secretary Greg Clark confirms he has asked Insolvency Service to fast-track investigation into Carillion鈥檚 directors and broaden scope to include those directors previously employed
- Business Secretary hosts meeting with leading business and construction trade bodies, representing Carillion鈥檚 sub-contractors
The Business Secretary Greg Clark has today (16 January 2018) outlined the steps the business department has taken following the liquidation of Carillion.
Following the appointment of the Official Receiver as liquidator, the Business Secretary has written to the Insolvency Service and the Official Receiver asking that the statutory investigation into the conduct of Carillion鈥檚 directors is fast-tracked and extended in scope.
This means the Official Receiver鈥檚 investigation will consider whether those who are, or were previously directors of the company may have caused detriment to those owed money, including workers and businesses affected.
Alongside this, the Business Secretary has also written to the chairman of the Financial Reporting Council (FRC), Sir Win Bischoff, and asked it to conduct an investigation into the preparation of Carillion鈥檚 accounts past and present, as well as the company鈥檚 auditors.
Greg Clark said:
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鈥檚 investigation.
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.
The Business Secretary also chaired a meeting yesterday (15 January) with leading business and construction trade bodies, representing Carillion鈥檚 sub-contractors including representatives from the construction sector:
- Build UK
- Civil Engineering Contractors Association
- British Constructional Steelwork Association
- Building Engineering Services Association
- Federation of Master Builders
- Construction Products Association
- Electrical Contractors鈥� Association
- Specialist Engineering Contractors Group
Also invited were representatives of leading business bodies with the Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC) and the Institute of Directors (IOD) in attendance.
Later today, the Business Secretary will meet the General Secretaries of the TUC and Unite, Frances O鈥橤rady and Len McCluskey, to discuss the impact on employees affected by Carillion鈥檚 insolvency.
The department has also outlined the resources open to those workers and businesses affected by Carillion鈥檚 liquidation who are seeking further information, including:
- a web page set up by the Insolvency Service for those affected and seeking advice
- a set up by the Special Managers, PWC, as well as a dedicated helpline 鈥� 0800 063 9282
- a hotline set up for any employee worried about their pension situation on these specific pension schemes 鈥� 020 7630 2715
- for more general advice on business support, the BEIS Business Support Hotline can also provide information 鈥� 0800 998 1098
- Jobcentre Plus, through its Rapid Response Service, also stands ready to support any employee affected by this announcement
Alongside this, the department鈥檚 network of 38 Local Growth Hubs, run in conjunction with the Local Enterprise Partnership (LEP), is also on hand to help businesses of all sizes and in all sectors to access support.