Carillion

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Stalled hospital has 'unsafe cladding'

The new Royal Liverpool Hospital was built with unsafe cladding that does not meet fire safety regulations, health bosses have revealed.

Royal Liverpool University Hospital
BBC

Work on the £335m hospital stalled in February after the collapse of construction giant Carillion.

Carillion said the building complied with fire regulations but this was "not the case" with some cladding, the Royal Liverpool Hospital Trust confirmed.

Chief executive Aiden Kehoe said it must be replaced "at additional cost."

Auditors must 'change'

Carillion worker in front of stop sign
Reuters

Commenting on the growing criticism of auditors this year in the wake of the Carillion collapse, Deloitte UK chief David Sproul said:

The audit profession has faced significant scrutiny in the past year, with concerns raised over quality, conflicts of interest and a lack of choice. These are serious concerns and we recognise the need for change. We must look at how the audits of the future match the evolving needs of stakeholders and society and address increasing business complexity.

New providers found for final Carillion contracts

Allen Cook

BBC News

The last contracts provided by collapsed construction giant Carillion have now been signed over to new organisations, the Official Receiver says.

Carillion worker
PA

The Wolverhampton-based company was liquidated with debts of £1.5bn in January and, at that time, the firm had about 420 UK public sector contracts.

Today, the Official Receiver says with the contracts transferred, they'll now be working on providing services for some Carillion suppliers and trying to make sure payments are made to suppliers who provided goods and services during the liquidation.

Their figures show 13,945 jobs have been saved since the bankruptcy, 76% of the workforce before the collapse, with 2,787 redundancies while 1,272 have left the business.

Conflicts of interest?

BBC Radio 4

Carillion railway line workers
Carillion

Auditors, those accountants who check that company accounts are true and fair, have come in for a lot of stick over the last couple of years.

Company failures - Carillion, for example - have focused attention on just how reliable some audits are.

Thomas Moore, investment director for UK equities are Aberdeen Standard, tells Today that investors have to rely on the accuracy of audits, otherwise the who system of checks and balances crumbles.

One of his worries is that auditors are "cross-selling". That is, selling other services on the back of the audit work which may be more lucrative.

"This may be tarnishing their judgement... We need to see that auditors are delivering audits independently.

"One way is which companies can help is to go outside some of the big firms and use a pure play auditor that focuses on nothing else."

Plumber took own life 'after debts following Carillion collapse'

Carillion auditor appoints risk officer

Carillion
Getty Images

KPMG, the accountancy firm that acted as auditor to the collapse services and outsourcing company Carillion, has appointed a chief risk officer.

Mary O'Connor will be a member of KPMG's executive committee and the UK board.

Ms O'Connor previously worked at Willis Towers Watson, where she led client and business development and the global financial institutions industry group.

Carillion collapse cost to Oxfordshire 'very significant'

Local Democracy Reporting Service

Fir Tree School
Google
Pupils at Fir Tree School have been working in temporary classrooms since March

The collapse of the facilities and construction company Carillion has created "financial and legal difficulties" for Oxfordshire County Council, the authority has said.

It has already spent £1.7m fixing problems with its buildings but the full cost of "picking up the pieces" is unlikely to be known until the autumn, the Local Democracy Reporting Service said.

Repairs at six adult day care centres were left incomplete and school buildings were unfinished, leaving pupils working in portable buildings.

The council's director of capital investment, Alexandra Bailey, said: "We don't yet know what the total cost will be but it will be very significant."