Asked by: Lord Sikka (Labour - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how much the Treasury has received in fines from KPMG for audit failures at Carillion, and what consideration they have given to using these to support Carillion employees who lost some of their pension rights.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
Fines imposed following investigations by the Financial Reporting Council (FRC) under its Audit Enforcement Procedure (AEP) are required by law to be transferred to the Secretary of State and must be paid into the exchequer to be used to fund public expenditure generally.
The fines imposed under the AEP on KPMG and two former partners for audit failures at Carillion totalled £21,420,000 after settlement discounts.
Oct. 04 2023
Source Page: Former CEO of Carillion disqualifiedFound: Former CEO of Carillion disqualified
Jul. 14 2023
Source Page: Second Carillion director disqualifiedFound: Second Carillion director disqualified
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what estimate she has made of the total costs incurred since January 2021 by (a) her Department and (b) the Insolvency Service in pursuing the disqualification proceedings dropped in October 2023 against five former board members of Carillion Construction Ltd.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Insolvency Service conducts directors disqualification proceedings under the Company Directors Disqualification Act 1986 on behalf of the Secretary of State for Business and Trade.
On the 12th of January 2021 the Insolvency Service commenced disqualification proceedings against 3 executive directors and 5 non-executive directors of Carillion plc. The Department for Business and Trade has not incurred any costs in relation to the proceedings. The Insolvency Service has incurred estimated costs in the proceedings against all 8 directors of £11,064,519. Following the successful disqualification of the 3 executive directors, costs of £2,725,000 have been recovered.
Mentions:
1: Lord Sikka (Lab - Life peer) After six years, they have not even yet managed to deal with the directors of Carillion. - Speech Link
2: Lord Browne of Ladyton (Lab - Life peer) reference my noble friend Lord Sikka made to the comparative inaction in respect to the directors of Carillion - Speech Link
3: Lord Offord of Garvel (Con - Life peer) It had a considerable review following the failure of Carillion and British Home Stores—the Sir John - Speech Link
Mentions:
1: Debbie Abrahams (Lab - Oldham East and Saddleworth) Taxpayers’ money is being wasted on scandals as wide-ranging as Carillion, Greensill and personal protective - Speech Link
Asked by: Lord Aberdare (Crossbench - Excepted Hereditary)
Question to the Department for Business and Trade:
To ask His Majesty's Government when they expect the final accounts for Carillion plc to be published by the Official Receiver following its liquidation in 2018.
Answered by Earl of Minto - Minister of State (Ministry of Defence)
The Official Receiver has issued three reports to the creditors of the Carillion group liquidations. The final receipts and payments account for Carillion plc is expected to be issued on completion of the liquidation work, which is ongoing at this time, and upon the Official Receiver applying to the Secretary of State for his release as liquidator.
Jul. 03 2023
Source Page: Former director of Carillion banned for 11 yearsFound: Former director of Carillion banned for 11 years