黑洞社区

The MPs running the parliamentary inquiry into Carillion will question the failed contractor鈥檚 major investors about its collapse next week.

Senior figures from Kilteran Partners, Aberdeen Standard Investments and Blackrock are set to face the joint inquiry, which is being co-chaired by Labour鈥檚 Frank Field and Rachel Reeves (pictured).

In a written submission to the inquiry, Kiltearn Partners, who at one stage held 10% of Carillion鈥檚 stock, said 鈥渢here are clear grounds for an investigation into whether Carillion鈥檚 management knew, or should have known, about the need for a 拢845m provision due to receivables on its construction business earlier than July 2017鈥�.

Last July, Carillion announced an 拢845m writedown on problem contracts which the hearing has already been told had to be revised up from 拢695m by interim chief executive Keith Cochrane just 24 hours before it was announced.

Kiltearn also said if Carillion had not gone into liquidation, it would have 鈥渃onsidered participation in civil legal action against Carillion with a view to recovering a proportion of its clients鈥� crystalised losses鈥�.

Murdo Murchison, chairman at Kiltearn Partners, will be joined by Euan Stirling, global head of stewardship and ESG investing at Aberdeen Standard Investments. The pair are set to appear next Wednesday along with Amra Bilic, managing director at Blackrock.

In its own written statement Standard Life Aberdeen said it began selling its stake in December 2015 due to concerns about financial management, strategy and corporate governance.

It said it was 鈥渇elt that management was not giving sufficient weight to the probability that trading may deteriorate further or to the downside risk from this scenario given the high level of debt. The board showed no inclination to drive the management to change.鈥�

Also facing MPs next week will be Ernst & Young partners Andrew Wollaston, Alan Bloom and Lee Watson.

The accountant was called in to assist with a review of Carillion鈥檚 finances after last July鈥檚 拢845m writedown.