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Monday, January 29, 2018

Carillion Was a Pile of Shit Run by, and for The Benefit of, Worms!

The BBC reports that all was not well in the House of Carillion in the years leading up to the collapse of the firm:
"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."
Frank Field, chairman of the Work and Pensions Committee said:
"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!

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