Carillion

The Financial Reporting Council has banned five former Carillion executives for periods ranging from two to 15 years and imposed financial sanctions after finding they acted recklessly in preparing the company’s financial information. Richard Adam (15 years) and Zafar Khan (10 years) received the longest bans and significant reduced fines, reflecting prior penalties by the Financial Conduct Authority. The misconduct related to transactions, major UK construction contracts and a supply chain finance facility that distorted reported performance between 2013 and 2017, preceding Carillion’s liquidation with £7bn of debts in January 2018. » More on theguardian.com

The Financial Conduct Authority fined former Carillion CEO Richard Howson £237,700 after he withdrew his challenge to a provisional penalty, finding he was aware of serious problems in the group’s construction business but failed to reflect this in announcements or alert the board. The FCA said Howson acted recklessly and was knowingly concerned in breaches of market abuse and listing rules. Carillion collapsed in 2018 with £7bn of debts, causing thousands of job losses and major disruption and overruns on public-sector projects. » More on theguardian.com

The Financial Conduct Authority fined Richard Adam £232,800 and Zafar Khan £138,900 for failing to alert the market, the board or the audit committee to serious problems before Carillion’s 2018 collapse. Carillion entered liquidation with £7bn of debts, causing thousands of job losses and large overruns on public projects including two new hospitals. Khan faces an 11-year ban from holding directorships, while former CEO Richard Howson is contesting related FCA findings with a tribunal set for 16 February. » More on theguardian.com