Carillion had just £29 million when the firm collapsed
Collapsed construction firm Carillion had just £29 million in the bank at the time it went bust.
The shocking figure has been revealed as the fallout from the company entering compulsory liquidation continues.
On top of the 20,000 jobs under threat at Carillion, it is feared there could be a ‘domino effect’ with smaller sub-contractors suffering as ‘innocent victims’.
The comments were made by Brian Berry, chief executive of the Federation of Master Builders, who said: ‘Now we are in a very precarious position where thousands of workers don’t know quite what their position is and often they can’t get on site.’
He told BBC Radio 4’s Today: ‘Carillion actually aren’t doing the work, they are relying on sub-contractors to do the actual building work.
‘Those companies are relying on the money coming from Carillion, that has stopped.’
Shadow Treasury chief secretary Peter Dowd said there was a ‘moral issue’ about the bonuses paid to Carillion directors.
He told the programme: ‘The moral point is that they shouldn’t take the bonuses.’
He acknowledged it may not be possible to claw back payments that had already been made, but said a public inquiry should investigate the issue.
He added: That’s a matter for the investigation, to try and find out how these people operated, what they knew, when they knew it, was there anything they should have done that they didn’t do or were things hidden?
‘That’s for an inquiry, a public inquiry preferably into this, which would look at all these factors.’