'This was not a victimless crime, thousands lost their jobs': Union calls for prison sentences over Carillion collapse
A union says the announcement by the Financial Conduct Authority that senior executives of Carillion misled the markets and acted ‘recklessly’ should result in the guilty being sent to prison.
The Wolverhampton-based construction and outsourcing company collapsed in January 2018 owing billions, resulting in thousands of workers either directly employed by the company or in its supply chain losing their jobs.
It was one of the largest corporate failures in UK history and nearly three years later the FCA has not yet completed its investigation into Carillion’s collapse.
In a warning notice on Friday the FCA said that a number of senior executives were “knowingly concerned” in numerous breaches of market rules and had acted recklessly.
The FCA’s findings relate to statements that Carillion made to the markets in December 2016, March 2017 and May 2017, that did not reflect the true financial performance of the company.
Those involved have 14 days to answer the FCA’s charges.
The FCA has indicated there would merely be a public censure to the firm.
Unite assistant general secretary Gail Cartmail said: “It is astonishing that nearly three years after Carillion’s collapse no one has yet been charged let alone convicted over their actions.
Predicament
“Without a doubt Carillion had been trading while insolvent for some time before its collapse.
“This was not a victimless white collar crime, thousands of workers lost their jobs. If executives and directors had reported honestly on Carillion’s financial predicament, many of those job losses could have been avoided.
“This case demonstrates everything that is wrong with corporate law in the UK, a failure to act before a company collapses, very slow investigations following a collapse and then if action is taken it is only a slap on the wrist.
“Public censure is not a sufficient punishment, the guilty should be going to prison.
“The Government needs to get its head out of the sand and introduce legislation which will end this form of bandit capitalism once and for all.”
Carillion was one of the UK’s largest construction companies – employing around 43,000 staff globally including 20,000 in Britain.
When it collapsed it had liabilities of almost £7 billion after a series of financial troubles caught up with the outsourcing giant.
