Capita shares plunge 41% after shock profit warning and cash call - business live https://t.co/oYuoT38S93— Richard Partington (@RJPartington) January 31, 2018
Loans and Finance
Wednesday, January 31, 2018
Tuesday, January 30, 2018
the head of the Insolvency Service has just told a select committee that Carillion kept such bad records that it had been hard to work out even simple information such as the identify of all its directors— Jim Pickard (@PickardJE) January 30, 2018
As I noted yesterday, Carillion really was shit!
Hadrill rejects accusation from MP that FRC has been "useless" over Carillion. Says "We don't have the ability to look inside the business...more than what is evident from what they publish"— Simon Gompertz (@gompertz) January 30, 2018
Monday, January 29, 2018
The BBC reports that all was not well in the House of Carillion in the years leading up to the collapse of the firm:
Frank Field, chairman of the Work and Pensions Committee said:"Carillion "wriggled out" of payments into its company pension schemes as its troubles grew, while it carried on paying shareholder dividends and bosses' bonuses, say MPs.The Work and Pensions Committee is questioning the way pension investments were managed at the collapsed outsourcing giant.
The schemes overall are in deficit.
But last year contributions to the pension funds were deferred until 2019, to help shore up the firm's finances.
The committee has published a letter from Robin Ellison, chairman of trustees of Carillion's pension scheme, giving an account of the last few years and suggesting they have been left with a funding shortfall of around £990m.
The letter shows that pension trustees were "kept in the dark" about the state of Carillion's finances until late last year, the committee argues, and that dividends and bonuses were paid out at the expense of pension fund contributions."
"It's clear that Carillion has been trying to wriggle out of its obligations to its pensioners for the last 10 years."It seems to me, to use a non technical/financial phrase, that Carillion was a pile of shit run by (and for the benefit of) worms!