Inquiry hears failed contractor wanted to be charged after reporting deadlines

Kyle

Carillion whistleblowers have said the company asked its suppliers to invoice the collapsed contractor after its reports were finalised, a parliamentary inquiry into the company鈥檚 liquidation has heard.

Labour MP Peter Kyle said the inquiry had been contacted by a number of people saying it was a common practice by Carillion.

He said: 鈥淲e have received evidence from several whistleblowers that Carillion would routinely ask creditors to delay invoices until after reporting deadlines.鈥�

Representatives from both its external auditor KPMG and internal auditor Deloitte said they were not aware of the practice and could not comment on whether directors would have had knowledge of the practice if it was taking place.

Kyle (pictured) also raised questions about the auditors鈥� knowledge of the cash problems surrounding Carillion鈥檚 job in Qatar.

Former chief executive Richard Howson told MPs earlier this month that the firm was owed 拢200m by Mshireb Properties for its work on the Downtown Doha scheme 鈥� disputed by the firm

Kyle said: 鈥淲e heard when directors gave evidence here, Mr Howson very clearly said that he was owed between 拢180m and 拢200m.

鈥淵ou would have seen the letter this morning from Mshireb Properties. They say in this letter: 鈥楳shireb Properties entirely disputes Mr Howson鈥檚 statement that Mshireb properties owed Carillion somewhere between 拢180m and 拢200m in March 2017. Furthermore, they say 鈥榠n fact, Mshireb Properties consider that Carillion owes Mshireb Properties a similar amount of money鈥�.鈥�

He asked: 鈥淲ho owed who 拢200m?鈥�

Peter Meehan, the KPMG audit partner responsible for signing off Carillion鈥檚 reports, said: 鈥淎t March 2017, I don鈥檛 know. I signed the December 2016 accounts. I know that my client was owed the 拢73.9m on the balance sheet at 31 December 2016. They are the accounts I signed.鈥�

Yesterday Meehan revealed that he, Carillion鈥檚 interim chief executive Keith Cochrane and Emma Mercer, then the finance director of Carillion鈥檚 UK construction business, had revised the 拢845m writedown figure it publsihed last July up from an original 拢695m.

The joint chair of the inquiry, Labour MP Frank Field, was scathing of what he heard yesterday from auditors and the pension regulator. 鈥淲e were told that these highly paid individuals are mere spectators 鈥� commentators at best, certainly not referees 鈥� at the mercy of reckless and self-interested directors. I fear it is not only Carillion that is built on sand: it is our whole system of corporate accountability.鈥�

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