Department for Business, Energy & Industrial Strategy
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Business Secretary outlines departmental action following Carillion liquidation

The business department sets out the steps being taken following Carillion’s liquidation.

  • Business Secretary Greg Clark confirms he has asked Insolvency Service to fast-track investigation into Carillion’s directors and broaden scope to include those directors previously employed
  • Business Secretary hosts meeting with leading business and construction trade bodies, representing Carillion’s 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 Receiverasking that the statutory investigation into the conduct of Carillion’s directors is fast-tracked and extended in scope.

This means the Official Receiver’s 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’s accounts past and present, as well as the company’s 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’s 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’s 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’ 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’Grady and Len McCluskey, to discuss the impact on employees affected by Carillion’s insolvency.

The department has also outlined the resources open to those workers and businesses affected by Carillion’s liquidation who are seeking further information, including:

  • web page set up by the Insolvency Service for those affected and seeking advice
  • dedicated website set up by the Special Managers, PWC, as well as a dedicated helpline – 0800 063 9282
  • a hotline set up for any employee worried about their pension situation on these specific pension schemes – 020 7630 2715
  • for more general advice on business support, the BEIS Business Support Hotline can also provide information – 0300 456 3565
  • Jobcentre Plus, through its Rapid Response Service, also stands ready to support any employee affected by this announcement

Alongside this, the department’s 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.

Letters

 

Channel website: https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy

Original article link: https://www.gov.uk/government/news/business-secretary-outlines-departmental-action-following-carillion-liquidation

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