Those who lost jobs in Carillion deserve answers, GMB says, as execs avoid trial
Questions are circulating around why the Government had invested “substantial” amounts of public money into a trial in pursuit of five Carillion non-executive directors which was dropped late last week.
In response to the trial being called off, GMB Union has said those who lost their jobs with the Carillion collapse “deserve answers.”
According to a report in The Times, the Insolvency Service was seeking disqualification orders that would have prevented five former board members from acting as directors.
The five members were Philip Green, long-serving chairman Andrew Dougal, Alison Horner, Ceri Powell and Keith Cochrain.
The collapse of Carillion in 2018 led to more than 3,000 job losses.
“The Carillion affair was a stain on the reputation of British business and the decision not to proceed with this trial creates the impression that it is being brushed under the carpet,” said Andy Pendergast, GMB national secretary.
“Workers, suppliers and the tax payer lost hundreds of millions in the collapse and yet those responsible seem to have escaped with minor sanctions and fines.”
He added that “serious questions” must be asked about why people have been let off the hook.
“The best that can be said is that it represents good money being thrown after bad, the worst frankly doesn’t bear thinking about.
“Those who lost their livelihoods deserve answers.”
In January 2021, the Insolvency Service issued director disqualification proceedings against eight former directors of the construction company.
Disqualifications were accepted for three: Zafar Khan for 11 years, Richard Adam for 12.5 years, and Richard Howson for eight years.
A spokesperson for the Insolvency Service said: “The Secretary of State is obliged to keep the public interest in all cases under constant review, and it was concluded that continuing with the proceedings against the Non-Executive Directors was no longer in the public interest.
“On that basis the parties agreed that the proceedings should be concluded by way of agreement and without the need for a trial or the associated expense. This concludes the proceedings.”
The Insolvency Service declined to comment on GMB’s statement.