Missed warning signs - yet the Government kept investing in Carillion

Extracts from an article by Rhiannon Bury, business reporter for The Telegraph.

“Troubled outsourcer Carillion plunged into liquidation on Monday in a final blow for a company dogged by financial catastrophe over the last few months.

The news that the company had failed to agree a deal with its lenders put thousands of jobs and pensions at risk and led to questions about the Government’s decision to keep handing the firm contracts, even after it announced profit warnings.” […]

“And yet, even as the firm showed serious signs of stress, the Government continued to sign off on new contracts. Days after July's profit warning, it was announced that Carillion had secured a place on a framework of contractors to build part of the High Speed Two rail link, resulting in major criticism for transport secretary Chris Grayling.

Since July, it has been awarded 10 awards or frameworks with a total value of £1.3bn, of which £137m was in actual contract awards and £1.2bn was in Carillion’s estimated share of frameworks with multiple suppliers, such as the HS2 contract, according to procurement data firm Tussell.”

Read the full article on The Telegraph website.

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