It appears councils were tipped off about Carillion鈥檚 problems last summer. The message to suppliers was very different, says Dave Rogers
As the various parliamentary probes into Carillion鈥檚 fall begin to wind down, perhaps the most shocking revelation 鈥� for Carillion鈥檚 stricken suppliers at least 鈥� has been made towards the end.
Councils and other public sector bodies, it seems, were tipped off as early as last summer that Carillion was so much of a basket case that it could fall over at any minute and that they had better get contingency plans in place.
Birmingham council鈥檚 director of procurement this week told MPs his council had received 鈥済ood intelligence鈥� from a number of government agencies about Carillion鈥檚 plight. In other words, they were getting a heads up.
Carillion鈥檚 supply chain, meanwhile, had no such luck. Thanks to a letter the firm sent out 11 days after its 拢845m writedown last July, firms were being told to stick with it because, after all, the government was 鈥� it had just awarded two HS2 contracts worth millions as proof of its faith in the firm.
What鈥檚 becoming increasingly clear is that, on the one hand, government was drawing up contingency plans for the public sector, while on the other Carillion鈥檚 suppliers were hung out to dry and left to fend for themselves. They have every right to feel peeved.
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