Carillion bosses braced for a grilling from MPs

Helen Cahill
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Two powerful committees of MPs are investigating Carillion (Source: Getty)

Carillion's former directors are in the hot seat this week as MPs question them on the contractor's demise.

On Tuesday, Zafar Khan, Carillion's former finance boss, will give evidence to the joint select committee inquiry into the collapse of Carillion. He will be joined by Richard Howson, Carillion's former chief executive, and former chairman Philip Green, who was also formerly a Number 10 adviser.

Read more: British Business Bank to support £100m in loans after Carillion collapse

With MPs showing particular concern about the remuneration handed out to bosses at Carillion, there will also be tough questions for Alison Horner, chair of Carillion's remuneration committee.

The government has announced 377 job losses in connection with Carillion, but has saved 919 jobs by moving staff into contracts with other firms. The Official Receiver, Carillion's liquidator, is prioritising staff working on infrastructure, government and construction projects.

Another focus for the parliamentary inquiry, which is being carried out by the Work and Pensions Select Committee in conjunction with the Business, Energy and Industrial Strategy Select Committee, is how the fallout will affect small businesses.

The government-owned British Business Bank will provide up to £100m in funding for loans to small businesses affected by Carillion's collapse. The backing, which will be delivered through high street banks, aims to enable smaller firms which may have suffered losses from the Carillion failure to access cheaper finance.

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