Richard Adam caused firm to 鈥渞ely on false and misleading financial information鈥� for its 2015 and 2016 financial statements, says Insolvency Service

Another former Carillion finance chief has been disqualified as a director.

Richard Adam, who was group finance director for the doomed contractor between 2007 and 2016, has been given a 12-and-a-half-year ban by the Insolvency Service.

Richard adam index

Richard Adam was heavily criticised by the Commons inquiry into Carillion鈥檚 collapse

It follows a similar ban for Zafar Khan, who was Carillion鈥檚 finance chief for nine months until he was fired shortly before the contractor鈥檚 collapse in 2018.

According to a statement from the Insolvency Service, acting on behalf of the secretary of state for business and trade, Adam caused Carillion to 鈥渞ely on false and misleading financial information鈥� for its 2015 and 2016 financial statements.

This included the reporting of revenue and costs on the performance of major jobs, namely Royal Liverpool University Hospital, Battersea Power Station, Aberdeen Western Peripheral Route, Midlands Metropolitan Hospital and Msheireb Phase 1(B).

According to the service, the financial statements 鈥渃oncealed the reality of the deterioration of the major contracts which in fact became loss-making and Carillion鈥檚 consequent grave and deteriorating financial position鈥�.

The value of the misstatement for the financial statements, in respect of these major contracts, was 拢95.4m in 2015 and 拢179.2m in 2016.

Carillion had been the UK鈥檚 second biggest contractor and was working on 420 public sector contracts when it went bust in January 2018.

Adam, along with ex-chief executive Richard Howson and chairman Philip Green bore the brunt of criticism in the 100-page report published by a public inquiry following the firm鈥檚 collapse.

Its findings labelled Adam as the 鈥渄ominant personality in Carillion鈥檚 finance department鈥� who was the 鈥渁rchitect of Carillion鈥檚 aggressive accounting policies [who] resolutely refused to make adequate contributions to the company鈥檚 pensions schemes鈥�.

The report said his departure in 2016 was 鈥減erfectly timed鈥� and that he had sold his shares in the company for 拢776,000 鈥渏ust before the wheels began very publicly coming off and their value plummeted鈥�.

At the time, Adam rejected the findings, saying the reasons for the collapse were 鈥渃learly complex鈥�.

鈥淚 have objected to the committees about quotes that they have misattributed to me,鈥� he said.

鈥淚 look forward to contributing to the due process and conclusion of the various investigations that are still ongoing.鈥�

Topics