Carillion finance chiefs investigated by top accounting regulator the Financial Reporting Council
Britain’s top accounting regulator has launched a probe into the actions of two of Carillion’s former finance chiefs.
In a widely expected move, Richard Adam and Zafar Khan are being investigated by the Financial Reporting Council (FRC).
Carillion’s 2014, 2015 and 2016 annual accounts are to be probed as well as its figures for the six months to 30 June 2017.
Adam was Carillion’s finance director between April 2007 and December 2016. He was succeeded by Khan, who was Carillion’s chief financial officer for just over eights months to 11 September 2017. In September 2017, Adam was forced to resign from the board of transport giant First Group after shareholders revolted against his reappointment.
Statements by Khan to an MP inquiry into Carillion’s failure appear to be at odds with those made by his successor Emma Mercer.
Adam, meanwhile, was slammed by the parliamentary committee for “dumping” shares in the company shortly before the announcement of an £845m contract write-down.
Read more: MPs turn on Carillion finance chief for “dumping” £750,000 of shares
On 29 January, the FRC opened an investigation into auditors KPMG.
“The investigations will be undertaken by the FRC’s executive counsel and enforcement division as quickly and thoroughly as possible,” the FRC said.
“The FRC is liaising closely with the Official Receiver, the Financial Conduct Authority, the Insolvency Service and the Pensions Regulator to ensure that there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion.”
Read more: Learning from Carillion? MP inquiries must shed more light than heat