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Carillion: Ex-chairman Philip Green takes blame for collapse | |
(about 2 hours later) | |
Former Carillion chairman Philip Green has taken the blame for the collapse of the company last month. | |
Mr Green was in the post when the construction giant, which provided services for schools, hospitals and prisons, went into liquidation. | |
"My responsibility is full and complete - not necessarily culpability but no question about full responsibility," he told the Work and Pensions Committee. | |
The committee has been quizzing former directors about the company's demise. | |
Earlier, the company's former finance director, Zafar Khan, denied being "asleep at the wheel" during his time in the role. | |
Mr Khan was not working for the company when it collapsed, having been sacked last September, but he said: "I believe I did everything that I could have done. | |
"As soon as I came into the role, we were looking to tackle the issues. The key focus of my time in the role was to bring net debt down. | |
"I was surprised at the outcome that eventually came to pass." | |
In a stormy committee session, Mr Khan also said he "spooked the board" when he reviewed the company's contracts. | In a stormy committee session, Mr Khan also said he "spooked the board" when he reviewed the company's contracts. |
But former Carillion chief executive Keith Cochrane has told MPs that was not the reason for Mr Khan's dismissal. | But former Carillion chief executive Keith Cochrane has told MPs that was not the reason for Mr Khan's dismissal. |
Mr Cochrane accepted that Mr Khan's findings were correct but told the committee: "Our concern was whether he was fully on top of all the cashflow arrangements and close to what was actually happening." | Mr Cochrane accepted that Mr Khan's findings were correct but told the committee: "Our concern was whether he was fully on top of all the cashflow arrangements and close to what was actually happening." |
He added that Mr Khan's dismissal happened at the same time as other senior management changes. | |
Mr Cochrane, who only took charge last July, said he was "truly sorry" about the company's collapse. | |
"It was the worst possible outcome. This was a business worth fighting for. That's what I sought to do during my time as chief executive," he said. | "It was the worst possible outcome. This was a business worth fighting for. That's what I sought to do during my time as chief executive," he said. |
The previous chief executive Richard Howson ran the company for six years before stepping down after a profit warning. | The previous chief executive Richard Howson ran the company for six years before stepping down after a profit warning. |
Mr Howson told the committee that towards the end of his time in charge, he "felt like a bailiff" trying to collect money. | |
He added: "The amount of energy and effort to make sure there is enough cashflow each month is extraordinary." | |
Mr Howson said he believed the company was well run, but had difficulties getting paid. | |
In particular he noted that Carillion was owed £200m for work on a project in Qatar. | |
He described a project in Qatar for which Carillion was owed around £200m at the time he was replaced by Mr Cochrane and which has now been put back until the end of this year. | |
Carillion employed 43,000 people, including around 20,000 in the UK. | Carillion employed 43,000 people, including around 20,000 in the UK. |
This month alone, more than 800 job losses have been announced and Mr Cochrane said: "Do I wish we'd done something about it sooner? Absolutely. | This month alone, more than 800 job losses have been announced and Mr Cochrane said: "Do I wish we'd done something about it sooner? Absolutely. |
"Clearly with the benefit of hindsight should the board have been asking further, more probing questions? Perhaps." | "Clearly with the benefit of hindsight should the board have been asking further, more probing questions? Perhaps." |