Philip Green, the government advisor
- Thread starter JohnD
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And there was me thinking it was some geezer called Fish.
It is reported that:
"Newly liquidated government contractor Carillion changed their own rules to protect the multi-million pound bonuses paid to bosses from being clawed back by investors and the British taxpayer, should the company enter financial difficulties.
The rule change happened just weeks before the company suffered an ‘accounting crisis’ that wiped £600m off of its share price.
The construction company, who hold a significant amount of outsourced government contracts, changed the wording of their own rules to make it much harder for the government or investors to force bonuses handed to company chiefs to be paid back in circumstances of ‘corporate failure’.
Under the previous rules, Carillion bosses and executives could have been forced to pay back their bonuses should the company enter into financial difficulties – but the rule change meant bosses could only be made to return bonuses in the event that they were found guilty of fraudulent behaviour.
The stark revelation, exposed during an investigation by This Is Money in September, casts huge suspicion on exactly how much foresight the Carillion board had about the impending financial crisis within the company.
Furthermore, the revelation that Carillion seemingly prioritised the personal riches of their top brass rather than the financial viability of the company will also increase public pressure on the government to halt the widescale privatisation and outsourcing of government work.
Carillion, who are contracted by the government to build and maintain a vast array of public buildings such as schools, hospitals, roads and railways, saw their share prices plummet by £600m in July 2017 after projecting massive £845million losses and suspending dividend payouts to shareholders.
Changes to Carillion’s claw-back rules were implemented shortly before the catastrophic losses were announced – protecting an estimated £4m that was paid out to the companies’ CEO Richard Howson and the firm’s ex Finance Chief Richard Adam.
And now, with the firm having entered liquidation after recording massive losses and running up huge debts, the government will be forced to use extra taxpayer’s money to essentially bail out the company to ensure workers are paid and that vital government work is still carried out in lieu of the companies’ financial mismanagement.
The case of Carillion is yet another example of the Tory government nationalising losses whilst privatising profits.
Because of the financial incompetence of this private firm, British taxpayers are now being forced to shell out huge sums of extra money paying for work that should have been completed by Carillion – all whilst their fat cat bosses are able to swan off with their multi-million pound bonuses unaffected.
Furthermore, revelations exposed shortly after the company collapsed indicate that the Conservative government continued handing taxpayer-funded contracts to the company despite obvious warnings that the company was facing impending financial ruin.
The entire Carillion fiasco is yet another damning indictment of the current neoliberal status quo, and a stark reminder that any sensible government would simply run such vital public contracts on a nationalised basis to ensure the work is carried out at a reasonable cost.
However, with public opinion turning sharply against the current neoliberal, pro-corporate greed status quo, the Tories’ privatisation bonanza may well be coming to an end shortly.
And with Jeremy Corbyn’s Labour party waiting in the wings to roll out their platform of mass renationalisation, time may well be running out for shoddy, greed-driven private companies looking to profit from vital public services."
"Newly liquidated government contractor Carillion changed their own rules to protect the multi-million pound bonuses paid to bosses from being clawed back by investors and the British taxpayer, should the company enter financial difficulties.
The rule change happened just weeks before the company suffered an ‘accounting crisis’ that wiped £600m off of its share price.
The construction company, who hold a significant amount of outsourced government contracts, changed the wording of their own rules to make it much harder for the government or investors to force bonuses handed to company chiefs to be paid back in circumstances of ‘corporate failure’.
Under the previous rules, Carillion bosses and executives could have been forced to pay back their bonuses should the company enter into financial difficulties – but the rule change meant bosses could only be made to return bonuses in the event that they were found guilty of fraudulent behaviour.
The stark revelation, exposed during an investigation by This Is Money in September, casts huge suspicion on exactly how much foresight the Carillion board had about the impending financial crisis within the company.
Furthermore, the revelation that Carillion seemingly prioritised the personal riches of their top brass rather than the financial viability of the company will also increase public pressure on the government to halt the widescale privatisation and outsourcing of government work.
Carillion, who are contracted by the government to build and maintain a vast array of public buildings such as schools, hospitals, roads and railways, saw their share prices plummet by £600m in July 2017 after projecting massive £845million losses and suspending dividend payouts to shareholders.
Changes to Carillion’s claw-back rules were implemented shortly before the catastrophic losses were announced – protecting an estimated £4m that was paid out to the companies’ CEO Richard Howson and the firm’s ex Finance Chief Richard Adam.
And now, with the firm having entered liquidation after recording massive losses and running up huge debts, the government will be forced to use extra taxpayer’s money to essentially bail out the company to ensure workers are paid and that vital government work is still carried out in lieu of the companies’ financial mismanagement.
The case of Carillion is yet another example of the Tory government nationalising losses whilst privatising profits.
Because of the financial incompetence of this private firm, British taxpayers are now being forced to shell out huge sums of extra money paying for work that should have been completed by Carillion – all whilst their fat cat bosses are able to swan off with their multi-million pound bonuses unaffected.
Furthermore, revelations exposed shortly after the company collapsed indicate that the Conservative government continued handing taxpayer-funded contracts to the company despite obvious warnings that the company was facing impending financial ruin.
The entire Carillion fiasco is yet another damning indictment of the current neoliberal status quo, and a stark reminder that any sensible government would simply run such vital public contracts on a nationalised basis to ensure the work is carried out at a reasonable cost.
However, with public opinion turning sharply against the current neoliberal, pro-corporate greed status quo, the Tories’ privatisation bonanza may well be coming to an end shortly.
And with Jeremy Corbyn’s Labour party waiting in the wings to roll out their platform of mass renationalisation, time may well be running out for shoddy, greed-driven private companies looking to profit from vital public services."
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Ah, Carillion, I was thinking Marillion.
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D
Doggit
Oh dear, Tory Bashing again John; I thought you'd got better lately.
Yes, Cariillion were inept and greedy, but you've forgotten to mention how much Gordon Brown extended the PFI contracts to keep the government borrowing off the nations books. What is the figure they reckon that he dumped on the nation, about £200bn I think, and that's been taken out of the education and health budget, so let's keep a little perespective please.
They are all uselss politicians, no matter which party or colour they are.
Yes, Cariillion were inept and greedy, but you've forgotten to mention how much Gordon Brown extended the PFI contracts to keep the government borrowing off the nations books. What is the figure they reckon that he dumped on the nation, about £200bn I think, and that's been taken out of the education and health budget, so let's keep a little perespective please.
They are all uselss politicians, no matter which party or colour they are.
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Brigade77
Never ever think that they are stupid, sometimes that is exactly what they want you to think.
What they do they do for a reason, a motive & an agenda.
Same here. What a shame.
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If they did as the news article claims then it won’t hold. Such a move could make the directors personally responsible for the loss.
They would have to be able to justify such a move and if they said anything along the lines of.. we were worried about going bust.. then they just held their hands up to a claim
They would have to be able to justify such a move and if they said anything along the lines of.. we were worried about going bust.. then they just held their hands up to a claim
Is it a surprise. Tory ****s.
D
Doggit
I can see why John dislikes the Tories, but why do you hate them Noseall. John continually post things showing how they've made mistakes and how he thinks their wrong, but that's just ideaology, but with you Noseall, it's a lot more venemous.
I detest greed. Tories make it easy for greedy people to be even greedier.
"...to complain about something else, so I will disregard what you have to say on this topic.
What about the Roman invasion, eh? And the bubonic plague? And the miners' strike? And Spanish Flu? And Murdoch's phone bugging? And William Joyce? And Lord Rothermere?"
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Doggit
Hah, you have a short sighted view of the world then Noseall. I detest greed as well, but its not the Tories that encourage it; greed has it's patronage in all political walks of life. You've only got to look at the Blairs to see how true that is. Look at how many peers that Labour and Liberals have enobled, and you'll soon see that greed isn't reserved to the Tories alone. Prescot railied aginst the house of lords, then justified the acceptance of his peerage by saying his wife wanted it. Greed is the province of people, not of political parties.
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