Former boss Richard Howson says he asked for international trade secretary鈥檚 help over money owed on Qatar and Oman jobs
Carillion bosses asked trade secretary Liam Fox to step in to help it recover cash on problem jobs in the Middle East.
Fronting the public accounts and public administration and constitutional affairs committees yesterday, former chief executive Richard Howson (pictured) revealed the collapsed contractor had sought a helping hand from the government to recoup cash.
Howson said: 鈥淲e also asked for and got support from the secretary of state to help us try leverage receivables into cash in the Middle East during 2017.
鈥淲e briefed the secretary of state for international trade in April or May of 2017 on an increasingly difficult situation in Oman and Qatar asking him to help us, alongside the ambassadors in those countries, to get a fair administration of those contracts.鈥�
Howson revealed the company was owed 拢200m by Qatari developer Msheireb Properties at another parliamentary inquiry earlier this month. Msheireb denied the claim.
The MPs running the hearing also questioned the Carillion directors on what goverment contracts awarded to the firm following its 拢845m profit warning last July had meant to the company, particularly its roles on HS2 and a support services contract with the Ministry of Defence.
Keith Cochrane, the man who took over from Howson in July, said: 鈥淎 business such as Carillion is underpinned by confidence, the confidence of its supply chain and employees and the fact that a major customer was continuing to award us new work was certainly a sign of confidence.
鈥淚t was encouraging in terms of our conversations with banks as it demonstrated the underlying work this business was doing was well regarded.鈥�
But Emma Mercer, the group finance director when the firm went bust, said while the jobs had boosted confidence they had not helped the company鈥檚 financial position.
Mercer said: 鈥淚 would add those contracts we were awarded brought very little benefit financially in terms of cash into the business during the time to January.鈥�
Last week, 黑洞社区 revealed that new documents showed that Carillion was using the government contracts to convince thousands of suppliers to stick with it.
The deals emboldened the firm to send out a supplier briefing note 11 days after the 拢845m writedown saying it was 鈥渃ommitted to business as usual鈥� and that the awards were 鈥渁 sign of the confidence that our key customers have in our ability to meet their requirements鈥�.
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