The fallout from Carillion's collapse in January continues to play out as it transpired this week that the company had delayed payments to subcontractors by up to 120 days. Carillion allegedly used tactics such as faulting invoices and finding minor problems with work undertaken in order to delay payment.
Carillion's failure has also caused concerns about job losses and non-performance of contracts. Carillion employed 20,000 in the UK alone and the latest Official Receiver statement confirmed that to date, as part of the liquidation, 989 jobs have been lost. A number of jobs have been saved, however, as new providers have taken on contracts, including prison facilities management and defence bases catering and cleaning. The Official Receiver is continuing to try to find new suppliers to take over Carillion's contracts and salvage something from the wreckage.
Elsewhere, Carillion's former directors have been the subject of intensive questioning from the joint business and pensions committee of MPs over what action they took to address the company's problems before its collapse. The grilling appears to be far from over: the directors' answers were deemed unsatisfactory, with their behaviour "delusional" by the committee chairs. Carillion's auditors, KPMG, face questioning before the committee next week.
Ashfords' Take: the Carillion saga continues, and more revelations are bound to come out in the coming weeks.