The Confederation of British Industry has slammed the parliamentary committee report
The Confederation of British Industry has rebuked the MPs responsible for the inquiry into Carillion鈥檚 collapse, saying their final report unfairly tarnished all big businesses.
Josh Hardie, CBI deputy director-general, said the report had failed to address the big picture and was a 鈥渒nee-jerk鈥� response.
He said: 鈥淭he language of the report suggests committee members think business in general is greedy and reckless. This is irresponsible and wholly inaccurate.
鈥淐arillion was a painful lesson for business and government on the dangers of short-termism in public service contracts. This failure should act as a catalyst for a level-headed discussion about how the public and private sectors work together to deliver value to society, as they so often do.鈥�
But while Carillion鈥檚 collapse highlighted the way such partnerships could go wrong, Hardie said there were many examples of business working well with the public sector.
He said: 鈥�200,000 organisations play a vital role in delivering public services, providing much-needed innovation and investment - whether through building new classrooms or transforming frontline public services - often in very challenging circumstances.
鈥淜nee-jerk soundbites on Carillon risk locking out innovation and investment at a time when it鈥檚 needed most.鈥�
The report, which was released earlier this week, was highly critical of directors, auditors, regulators and government representatives involved in the collapse.
MPs said directors showed 鈥渞ecklessness, hubris and greed鈥� and said they had 鈥渘o faith鈥� in the Pensions Regulator or Financial Reporting Council because of their failure to intervene in the lead up to Carillion鈥檚 collapse.
Auditors also came under fire, with Carillion鈥檚 internal auditor Deloitte labelled either 鈥渦nable or unwilling鈥� to highlight risk, while the contractor鈥檚 external audtior KMPG was called 鈥渃omplicit鈥� in the firm鈥檚 poor accounting practices.
When it came to advisors the report said: 鈥淭he appearance of prominent advisors proves nothing other than the willingness of the board to throw money at a problem and the willingness of advisory firms to accept generous fees.
鈥淎dvisory firms are not incentivised to act as a check on recklessly-run businesses. A long and lucrative relationship is not secured by unduly rocking the boat.鈥�
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