Carillion

KPMG has responded to a report by the financial watchdog into its auditing of Carillion’s accounts between 2014 and its collapse. The auditor’s response brings it a step closer to settlement with the Financial Reporting Council (FRC), according to Sky News. The final settlement is likely to take several months…

An entity named ‘Carillion’ has appeared on an HMRC list of claimants of furlough cash. The list of claimants for the Coronavirus Job Retention Scheme (CJRS) – recently released for the first time in a bid to make the scheme transparent and deter fraud – includes company trading names and…

The government has started legal proceedings to ban up to eight former Carillon directors from holding boardroom posts. Days before the third anniversary of Carillion’s collapse, new business secretary Kwasi Kwarteng launched the legal bid to ban the former bosses from holding director positions. Chief executive Richard Howson, chief financial…

Some Carillion directors “acted recklessly” and released “misleadingly positive” market updates in the year before it collapsed, the financial watchdog has said. Three updates were singled out by the Financial Conduct Authority (FCA) for not disclosing the company’s true financial state, as it announced it had sent out warning notices.…

The Financial Reporting Council (FRC) has indicated its investigation into KPMG’s audit of Carillion has found breaches on the part of the accountant. The FRC has been investigating KPMG’s work across accounting for construction and services contracts, and other financial aspects such as pensions liabilities, goodwill and going concern in…

Carillion’s liquidator has filed a negligence lawsuit against KPMG, the auditing giant who signed off the contractor’s pre-collapse accounts. The Financial Times reports that the official receiver, who collects assets for creditors, is preparing to make a £250m claim against KPMG over alleged negligence in the auditing of the failed…

Balfour Beatty’s work on the Midland Metropolitan Hospital could be slowed by the “sustainability of the supply chain” in the wake of COVID-19, the local NHS has warned. The contractor is still on site working to complete the £600m hospital, which Carillion had originally been set to deliver. An update…

The trust behind the Royal Liverpool Hospital is to decide on whether to issue legal claims against Carillion’s insurers and subcontractor Heyrod this summer. The major city hospital was originally supposed to be operational in 2017 and cost £746m to build and run, but was delayed repeatedly. It was thought…

HS2's go-ahead will see the UK construction market “tighten” and will benefit firms not directly working on the project, analysts have claimed. Prime minister Boris Johnson told the House of Commons shortly after midday that "the cabinet has given HS2 the green signal", ending months of speculation about the future…

Private companies have borne most of the increased construction costs on the two Carillion PFI hospital contracts, the National Audit Office (NAO) has confirmed. As claimed by the Cabinet Office, and as reported by Construction News earlier this week, the taxpayer has not paid for most of the cost increases, with…