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Investigation set to begin into Carillion failure as last contract transfers to new provider

07 August 2018

Progress in the recovery operation following the collapse of Carillion in January this year has been announced by the government.

It confirmed that the last of the failed company's 278 contracts had been reassigned, nearly eight months after it went into liquidation.

Analysis was also shared on the fate of its former employees, including the fact that 76%, or nearly 14,000 staff, had transferred to other companies.

A total of 1,272 people had left the business, according to Infrastructure Intelligence, attributed to them finding new jobs, retiring or "other reasons".

More than 2,780 former employees had been made redundant, it was stated, with no details shared on the payment they had received.

Approximately 240 people are continuing to work for the business, the majority of whom are at its Wolverhampton base and involved with assisting the Official Receiver and PwC, which was requested to assist in finding new companies to take over the former Carillion contracts.

Official Receiver Dave Chapman praised the professionalism of the former company's employees in their continued efforts to assist his department and PwC in their efforts to reassign contracts.

"Staff have been very professional throughout the liquidation and I want to thank them for their support as we worked to find new suppliers," he said.

Mr Chapman further stated that an investigation will now begin to identify the cause of the Carillion collapse that will also look at the conduct of its former directors.

Discussing the issue last January, the PFM Editorial Advisory Board - along with other industry representatives - questioned why the government had continued to assign public sector contracts to Carillion in the months before it failed.

A recent meeting between PFM and Crown Commercial Service revealed that many changes have been made to the public sector procurement process, with the next phase due to be introduced within next two months.

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