Carillion: Behind the Headlines

Carillion: Behind the Headlines:

With the recent bombshell news that Carillion was going into voluntary liquidation there are growing fears that other firms such as G4S could also be at risk. News has also surfaced that KPMG is under increasing pressure and risks being investigated for giving Carillion’s financial statements its seal of approval only 10 months ago.

CCH Daily recently reported that, in respect of Carillion, “the official receiver will make an application to the High Court for PricewaterhouseCoopers (PwC) to be appointed as special managers, to act on behalf of the official receiver, and we further anticipate that an order will be granted to that effect.”

It has also emerged that the government had awarded “contracts worth £2bn to the firm even after it had issued profit warnings.” When challenged on this issue a senior government minister replied that “contracts awarded after the profit warnings were only won as part of joint ventures (JVs) where the other JV partners would guarantee the provision of services.”

H/t reader squodgy:

“My own experience with “The Big Four” was along the same lines.
They audited the books with small random samples as against checking the full monty as it used to be done.
Sadly the Accountancy charters are as much to blame for lowering the standards in favour of speeding things up for the big boys.
A classic case of pressure from above.
They all deserve what they get….except the poor minion.”

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