{"id":482695,"date":"2023-07-17T12:44:46","date_gmt":"2023-07-17T11:44:46","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=482695"},"modified":"2023-07-17T17:35:40","modified_gmt":"2023-07-17T16:35:40","slug":"second-carillion-boss-handed-long-term-director-ban","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/carillion\/second-carillion-boss-handed-long-term-director-ban-17-07-2023\/","title":{"rendered":"Second Carillion boss handed long-term director ban"},"content":{"rendered":"

A second former Carillion boss has been banned from being a director for more than a decade after a finding that he provided false and misleading financial information.<\/span><\/p>\n

The Insolvency Service, which is overseeing Carillion\u2019s liquidation, said it had accepted a disqualification undertaking from Richard Adam, the company\u2019s finance director between 2007 and 2016, for 12-and-a-half years.<\/span><\/p>\n

It follows the<\/span> recent disqualification of Adam\u2019s successor at Carillion, Zafar Khan<\/span><\/a>, for 11 years.<\/span><\/p>\n

The service said Adam caused the firm to rely on \u201cfalse and misleading financial information\u201d for the preparation of its consolidated financial statements for 2015 and 2016, and in the reporting of the performance of major construction contracts.<\/span><\/p>\n

The contracts were for Royal Liverpool University Hospital, Battersea Power Station, Aberdeen Western Peripheral Route, Midlands Metropolitan Hospital and Msheireb Phase 1B in Qatar.<\/span><\/p>\n

The Insolvency Service said the statements \u201cconcealed the reality of the deterioration\u201d of the contracts, which became loss-making, and \u201cCarillion\u2019s consequent grave and deteriorating financial position\u201d.<\/span><\/p>\n

On these major contracts, the scale of the misstatement for 2015 was \u00a395.4m, and for 2016, \u00a3179.2m, according to the Insolvency Service.<\/span><\/p>\n

In relation to the accounting periods ending 31 December 2013, 2015 and 2016, the service said Adam caused Carillion to conceal material information from its auditors relating to the major contracts and other transactions.<\/span><\/p>\n

Among the other issues highlighted were the director\u2019s connections to market announcements in 2016 and 2017 that were \u201cmisleading as to the reality of Carillion\u2019s financial performance, position and prospects\u201d.<\/span><\/p>\n

Last year, Adam was<\/span> fined \u00a3318,000 by the Financial Conduct Authority<\/span><\/a> for his part in \u201crecklessly\u201d publishing misleading accounts. But he, as well as Khan and Carillion\u2019s former chief executive, Richard Howson, are appealing the fines.<\/span><\/p>\n

At the time of its collapse in 2018, the Birmingham-headquartered company was the second-largest contractor in the UK and employed 43,000 people globally.<\/span><\/p>\n

The government<\/span> began legal proceedings<\/span><\/a> against eight directors and former directors of Carillion in 2021. Litigation against the six remaining directors is ongoing, with a trial set to commence in October.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A second former Carillion boss has been banned from being a director for more than a decade after a finding that he provided false and misleading financial information. The Insolvency Service, which is overseeing Carillion\u2019s liquidation, said it had accepted a disqualification undertaking from Richard Adam, the company\u2019s finance director between 2007 and 2016, for …<\/p>\n","protected":false},"author":89657,"featured_media":373296,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[531,578],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n