William Eichler 15 January 2020

Government failing to ‘learn lesson’ of Carillion collapse

The union Unite has accused the Government of failing ‘to learn the lessons’ from the collapse of the outsourcing giant Carillion.

Today marks the second anniversary since the collapse of Carillion, which led to 3,000 jobs being lost and 450 public sector projects falling through.

‘The collapse of Carillion and other high profile corporate failures, has resulted in thousands of workers losing their jobs,’ said Unite assistant general secretary Gail Cartmail.

‘In all these cases apparently healthy companies suddenly experienced financial problems and in several cases collapsed.’

It is understood that a report by the National Audit Office into the manner in which the Government awarded contracts to Carillion is to be published soon.

The Financial Reporting Council (FRC), which is examining Carillion’s audits and accounts dating as far back as 2013, has reported that it will publish its findings this summer.

A separate investigation by the Official Receiver is expected to report on how long Carillion was trading while insolvent and what action should be taken against the company’s directors.

Ms Cartmail said the auditing and accounting system for major companies is ‘clearly not fit for purpose’.

‘The fact that no regulator has been able to complete an investigation into Carillion and some are still at least a year from completion is a scandal in itself,’ she said.

Unite warned that the delays in establishing what went wrong continue to afflict two flagship hospital projects where work ceased when Carillion collapsed.

The Royal Liverpool hospital in Liverpool, which should have been completed in 2017, will not be completed until 2022. It will now cost £300m to complete. Work on the half-finished Midland Metropolitan hospital, on the border of Birmingham and the Black Country, is yet to restart with the contract only having been recently awarded to Balfour Beatty.

‘Despite the millions of pounds that the collapse of Carillion has cost the taxpayer not one single person has been found guilty of doing anything wrong,’ continued Ms Cartmail.

‘Until there is root and branch reform of how companies are allowed to operate in the UK and the way they are regulated workers will continue to be the innocent victims of bandit capitalism.’

Skate parks are not the only fruit image

Skate parks are not the only fruit

On Go Skateboarding Day, Susannah Walker asks councils and their leisure and park departments to think differently about what facilities they provide for teenagers.
SIGN UP
For your free daily news bulletin
Highways jobs

Teacher of the Deaf

City of Bradford MDC
Band/Grade MPS / UPS + 1 or 2 SEN
We are seeking to recruit a creative, innovative and experienced Teacher of the Deaf to work in the Support Team for Deaf Children. Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Registration Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£26,481 -£37,677
Do you want a fast-paced and varied role? Would you like to help people through some of the most important moments of their lives? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Head of Service – Adults Services South, Safeguarding & DoLS

Bolton Council
£51,772
It is an exciting time to join us as Head of Service for Safeguarding, DoLS and South District. Bolton, Greater Manchester
Recuriter: Bolton Council

Apprenticeship

Royal Borough of Greenwich
£28,470 - £44,628
Kick-start your career with an apprenticeship based in Royal Borough of Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Social Worker – Enhanced Social Care Support In Reach

Essex County Council
£32,787 to £44,826
We currently have an opportunity for a Social Worker to join our Countywide Enhanced Support In Reach Team. Essex / Countywide
Recuriter: Essex County Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.