x

Abu Dhabi, UAEWednesday 19 December 2018

Senior Carillion executive sold $1.1m worth of stocks before company's collapse

Finance director sold shares in the UK construction company months before it imploded, parliamentary committee says

Carillion's former finance director sold shares in the UK construction company $1.1m months before the firm collapsed. Daniel Sorabji / AFP
Carillion's former finance director sold shares in the UK construction company $1.1m months before the firm collapsed. Daniel Sorabji / AFP

Carillion's former finance director sold shares in the UK construction company worth about £776,000 ($1.1 million) months before it imploded, according to parliamentary committees.

Richard Adam cashed in shares for £534,000 in March 2017, less than three months after he retired, and then sold long-term incentive awards in May last year on the day they vested for £242,000, the committees said, citing a letter from the former Carillion official.

Carillion’s collapse in January left behind debts of about 1.6 billion pounds and triggered a debate in Britain about the extent to which the government relies on businesses to provide public services and build infrastructure including schools, libraries and roads.

_______________

Read more:

UK's Carillion collapses as banks refuse to lend more money

Carillion collapse lays bare UK government contracting problems

Former executive ‘unearthed major problems at Carillion’

‘Business as usual’ in UAE despite liquidation of UK construction firm Carillion

_______________

The company’s fall gathered pace last July after a series of construction contracts soured. Three profit warnings in about half a year caused its shares to plummet.

Zafar Khan became finance director in late 2016, replacing Adam, but he left the company several months later. The work and pensions committee and the business, energy and industrial strategy committee are publishing responses from Adam and Khan following evidence given to Parliament earlier this month.