The board of construction giant Carillion oversaw a “rotten corporate culture” that led to the company’s costly collapse this year with debts of more than £2 billion, a damning report by British lawmakers has found.
Carillion’s directors were busy “stuffing their mouths with gold” rather than ensuring the smooth running of a business, according to two parliamentary committees who raised questions about the relationship between major British firms and a “cosy club” of auditors.
The company – which specialised in government contracts from building hospitals to managing schools – collapsed in January with huge debts. It employed 43,000 people globally after expanding into Canadian, Caribbean and Middle East markets.
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Read more:
British MPs say accountancy firms face questions over Carillion collapse
Qatari developer slams 'misleading' Carillion claims
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Its directors blamed a delayed £200 million payment from Qatar over a hotel, office and residential development in Doha for its demise along with other “challenging contracts” in Oman. The former chief executive Richard Howson told MPs that “working in the Middle East is very different to working anywhere else in the world”.
But the MPs said that Carillion’s forays in overseas markets were “largely disastrous” and driven by “optimism rather than any strategic expertise”. They was scathing about the company’s model, which it described as an “unsustainable dash for cash”.
The lawmakers called for government reforms to address failures that allowed Carillion to become a “giant and unsustainable corporate time bomb.”
“The company’s delusional directors drove Carillion off a cliff and then tried to blame everyone but themselves,” said Ms Reeves. “Their colossal failure as managers meant they effectively pressed the self-destruct button on the company.”
The UK lawmakers called for the potential break-up of the so-called Big Four accountancy firms who failed to supply the independent scrutiny of a company that was heading for the rocks because of its dependency on debt and culture of acquisition.
Lawmakers said that the Big Four - PwC, KPMG, Deloitte and EY - had earned £71m since 2008 on work related to the firm.
“The sorry saga of Carillion is further evidence that the Big Four accountancy firms are prioritising their own profits ahead of good governance at the companies they are supposed to be putting under the microscope,” she said.
Ms Reeves told the BBC that the four providing auditing services for virtually every listed company. “We need reform,” she said.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Get inspired
Here are a couple of Valentine’s Day food products that may or may not go the distance (but have got the internet talking anyway).
Sourdough sentiments: Marks & Spencer in the United Kingdom has introduced a slow-baked sourdough loaf dusted with flour to spell out I (heart) you, at £2 (Dh9.5). While it’s not available in the UAE, there’s nothing to stop you taking the idea and creating your own message of love, stencilled on breakfast-inbed toast.
Crisps playing cupid: Crisp company Tyrells has added a spicy addition to its range for Valentine’s Day. The brand describes the new honey and chilli flavour on Twitter as: “A tenderly bracing duo of the tantalising tingle of chilli with sweet and sticky honey. A helping hand to get your heart racing.” Again, not on sale here, but if you’re tempted you could certainly fashion your own flavour mix (spicy Cheetos and caramel popcorn, anyone?).
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Company profile
Date started: January, 2014
Founders: Mike Dawson, Varuna Singh, and Benita Rowe
Based: Dubai
Sector: Education technology
Size: Five employees
Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.
Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
HWJN
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THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Specs%20
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