posted on 16 May 2018, updated on 16 May 2018
A Parliamentary report released today attributes Carillion's collapse to “recklessness, hubris and greed” among directors. It also criticises the government, accountants and regulators.
The report's summary identifies the following major failings:
- Its business model was a relentless dash for cash, driven by acquisitions, rising debt, expansion into new markets and exploitation of suppliers.
- It presented accounts that misrepresented the reality of the business, and increased its dividend every year.
- Long-term obligations, such as adequately funding its pension schemes, were treated with contempt.
- Even as the company very publicly began to unravel, the board was concerned with increasing and protecting generous executive bonuses.
For more information and to access the report go to www.parliament.uk.