Carillion Canada still maintaining Ontario roads despite parent company's collapse

Modesto Morganelli
Января 17, 2018

The Scottish government has set up helplines for anyone who may be affected by the failure of construction firm Carillion.

But the head of the Federation of Small Businesses said thousands of jobs and livelihoods were now at risk because those firms would be at the back of the queue for payment.

Despite the red flags, the government continued to award the company major public contracts, including on a flagship new high-speed rail project, leading to increasingly scathing criticism. After that, they could be terminated unless the firm's private sector clients agree to keep paying for the services, and cover any additional costs run up by the liquidator.

"But we also had a report from PwC, who are working as the special managers for the official receiver [the civil servant tasked with overseeing the bankruptcy proceedings], that took us through the advice they are providing to concerned employees and contractors on their website and through their helpline".

More than half the borrowing is owed to banks led by a £835 million-loan from lenders including Barclays Plc, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc, according to a September company statement and data compiled by Bloomberg. It also might be down to mismanagement of the company's £900m debt and £600m pension scheme. Its pension plan has a deficit of £587 million. "As a matter of urgency the Government needs to provide clear answers to all these questions".

The government indicated that "some" of the 450 public sector contracts held by Carillion might be taken in-house, while other subcontractors were expected to take over projects.

The UK government on Tuesday ordered a fast-track investigation into directors at the failed construction company Carillion.

But the expectation in Whitehall is that Number 10 will refuse to bow to carillion's demands, making it increasingly likely that it could fall into administration as early as Monday.

According to the Daily Mail, pay policy wording was changed earlier past year to make it more hard for executives to lose their bonuses in the event of a financial crisis.

LEGACY CONTRACTS However, Balfour, which worked with Carillion on three British road projects, said the collapse would probably cost it between 35 and 45 million pounds. "How can they explain that £2 billion worth of government contracts - taxpayers' money - was awarded despite all the information that has clearly been in the public domain?" he said. The Carillion contract for highways east of Thunder Bay is due to expire in the summer of 2019, the ministry said.

It has seen its shares price plunge more than 70% in the past six months after issuing a series of profit warnings and breaching its financial rules.

Crisis-hit United Kingdom construction firm Carillion on Monday announced it is going into liquidation after last-minute talks to save the business over the weekend failed.

Britain began outsourcing public services in the late 1980s under Margaret Thatcher and the model expanded under successive governments. Workers on private sector contracts, however, will be paid by the government for only 48 hours. The government stopped short, however, of bailing out the company as it did with major banks during the 2007-09 financial crisis.

Carillion's collapse underscores the extent to which Britain's ruling elite has looted and pillaged vital social assets in pursuit of the selfish concerns of their super-rich paymasters.

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