UK government questioned over Carillion contracts after profit warning

Extracts from an article by Andrew MacAskill, journalist at Reuters.

"Britain’s government is under pressure from opposition parties to explain why ministers awarded construction company Carillion 1.3 billion pounds of new contracts after it was known to be in financial difficulty.

Carillion collapsed on Monday in one of Britain’s biggest corporate failures, throwing hundreds of large projects into doubt and forcing the government to step in to guarantee vital public services.

Britain’s opposition Labour and Liberal Democrat parties called for an investigation into the government’s dealings with Carillion before the company collapsed.

Tussell, which runs a database of government contracts in Britain, estimates that Carillion was awarded government contracts worth 1.3 billion pounds after the company issued its first profit warning in July."

Read the full article on the Reuters website.

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