Three years after construction giant Carillon collapsed, the government is planning to take action against eight former Carillion directors and ban them from holding senior boardroom positions, according to reports in this morning’s Guardian newspaper.
A spokesman for the Insolvency Service told the Guardian that: “We can confirm that on 12 January 2020 the secretary of state issued company director disqualification proceedings in the public interest against eight directors and former directors of Carillion.”
The new business secretary, Kwasi Kwarteng, has launched the action seeking to disqualify the directors “in the public interest”. This could mean the former directors being banned from acting as company directors or holding senior management positions for between two and 15 years each.
Those being prosecuted include the former chairman Philip Green, the former chief executives Richard Howson and Keith Cochrane who took over during Carillion’s final months. Two former finance directors and three boardroom non-executives are also named.
The action follows the submission of a report about each director’s conduct by the official receiver – the part of the Insolvency Service charged with handling Carillion’s liquidation.
Carillion went bust owing £7billion in one of the largest corporate failures. Two major PFI hospitals in Liverpool and Sandwell are still grappling with the financial and technical mess that Carillion left.