Business World

Monday 16 July 2018

'I wish we had done something about it sooner' - Ex-chief of construction giant Carillion

The UK construction giant collapsed after failing to secure a UK government bailout as its debts mounted Photo: Bloomberg
The UK construction giant collapsed after failing to secure a UK government bailout as its debts mounted Photo: Bloomberg

Kalyeena Makortoff and Ravender Sembhy

The former head of defunct construction giant Carillion has admitted he should have acted sooner before its collapse, while the firm's finance chief denied being "asleep at the wheel".

Former boss Keith Cochrane, who is among a string of executives being grilled by MPs, claimed all the decisions he took were in the best interests of the company.

But he added: "Clearly the business did have issues - undoubtedly. And clearly, do I wish we had done something about it sooner? Absolutely. I recognise that.

"I can assure you that all the decisions I took in seeking to do the best thing for the business at that juncture."

The appearance of Carillion directors, including former finance chief Zafar Khan, comes just weeks after the outsourcing and construction giant collapsed in mid-January.

Carillion was struggling under nearly £900m of debt and last year reported a £587m pension deficit when it fell into liquidation.

When pressed about his responsibilities, Mr Cochrane added: "From my perspective as non-executive director during this period of time, the role of the board was to challenge on the basis of information that was provided from management, that is what we sought to do."

Mr Khan, meanwhile, denied being "asleep at the wheel" and expressed his surprise over the firm's liquidation.

He said that Carillion was grappling with mounting debt, significantly underperforming contracts and tough construction markets in the UK.

Despite the precarious position the company found itself in, Mr Khan insisted he "did everything" he could have done.

"No, I don't believe I was asleep at the wheel because as soon as I came into the role, we were looking to tackle the issues and the key focus of my time in the role was to bring net debt down."

He added: "I believe I did everything that I could have done, essentially."

When pushed by MPs on the Business and Pensions Committees, he added that he did not expect the company to collapse.

"I was surprised at the outcome that eventually came to pass," Mr Khan said.

Press Association

Business Newsletter

Read the leading stories from the world of Business.

Also in Business