Former Carillion boss banned from UK boards for eight years
T
he former boss of failed outsourcer Carillion has been banned by the Insolvency Service from main a enterprise for the following eight years.
Richard Howson won’t be able to be a director of a UK firm after the authority mentioned he must have identified that the way in which some contracts had been reported “concealed the reality of the deterioration”.
The former chief government “ought” additionally to have identified of the “false accounting, of the profit overstatement and of the net debt understatement and of the concealment from the auditors” round what funds Carillion was obliged to make to Wipro, a consultancy.
He additionally signed off on a £54.4 million dividend, which was paid in June 2017, however “could not be justified by reference to the … financial statements”, the Insolvency Service mentioned.
“Mr Howson ought to have known that the 2016 final dividend payment was not in the interests of Plc, its members or its creditors and was not one that Plc could reasonably afford to make in view of its true financial performance.”
Carillion issued a revenue warning only a month after the dividend was paid out to shareholders. Less than a 12 months later, the agency – which employed round 12,000 folks – collapsed.
Mr Howson just isn’t the primary to be suspended. This summer season former finance boss Zafar Khan was banned from being a director for 11 years.
An Insolvency Service spokesperson mentioned: “The Insolvency Service, acting on behalf of the Secretary of State for Business and Trade, has accepted a disqualification undertaking from Richard Howson for eight years for his conduct as a director of Carillion Plc.
“This follows the disqualification undertakings the Insolvency Service accepted from Zafar Khan on June 29 and from Richard Adam on July 13.
“As the litigation against the remaining directors is ongoing, with a trial set to commence the week of October 16, we are unable to comment any further.”