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The MPs running a joint inquiry into Carillion鈥檚 collapse have labelled its directors as 鈥渇antasists鈥� who have come up with a 鈥渓itany of excuses鈥� after a letter from Qatari developer Msheireb showed the depth of the dispute over 拢200m they claimed the company was owed when it went bust.

Giving evidence earlier this month, former chief executive Richard Howson said Msheireb 鈥渙wed us 拢200m鈥� in July 2017, which had risen from 鈥渁bout 拢180 or 拢190 million鈥� that March. The 31 December 2016 accounts signed off by auditor KPMG had the debt at 拢72m.

But a letter sent from Msheireb to the inquiry, the developer said it 鈥渆ntirely disputes鈥� Howson鈥檚 claims and that he was 鈥渕isleadingly鈥� referring to 鈥渢he value of construction work remaining to be completed鈥� as well as 鈥渢he value of claims relating to further delays鈥�.

And Msheireb said Carillion actually owed it 鈥渁 similar amount of money鈥�, including 鈥済ood faith overpayments鈥� made 鈥渢o assist Carillion鈥� and direct payments Msheireb made to subcontractors who Carillion had not paid.

It said these had been made to 鈥渆nsure that they continued with the work鈥�, despite the fact that 鈥渢hese were often works which we had already paid to Carillion鈥�.

The Qatari developer also said contractual delay damages were due because of Carillion鈥檚 failure to complete work 鈥渋n a timely manner鈥� along with 鈥渄elays caused by Carillion鈥檚 resourcing, financial issues and problems with their supply chain鈥�.

In a letter Howson wrote to the committee following his evidence three weeks ago, the former chief executive said there was around 拢317m in outstanding external claims on the Msheireb contract, of which 80%, or 拢253m, was attributable to Carillion.

Howson added that one of the reasons why he was asked to stay on at the business by his replacement Keith Cochrane after being sacked following the 拢845m writedown last July was to do with 鈥渕orale鈥� in the UK construction business.

Co-chair of the inquiry Frank Field (pictured), who chairs the work and pensions committee, said the difference in claims between the contractor and developer showed those in charge at Carillion were 鈥渇antasists鈥� and added. 鈥淚t takes a special kind of optimism 鈥� that of a man kept on after his sacking to keep up morale 鈥� to classify money one hopes to earn in the future, on a challenging project, as money 鈥檕wed鈥� to you. He cannot tell the difference between money he鈥檇 like to be paid, he wishes would be paid, and money that is actually owed to him.

鈥淭he likes of non-executive directors and auditors are there to guide the company 鈥� and its books 鈥� back down to earth. In the case of Carillion it was, unfortunately, a crash landing.鈥�

Field鈥檚 co-chair and counterpart on the business committee, Rachel Reeves, said: 鈥淭he Carillion directors鈥� litany of excuses for the collapse of the company is fast unravelling. While spiralling debt problems and failing contracts signalled the alarm to almost everyone but Carillion鈥檚 directors and auditors, their former chief executive was jet-setting off to Qatar to chase a pot-of-gold that may never have existed.

鈥淥nce again Carillion鈥檚 directors appear to have shut their eyes and ears to the real problems at the company and failed dismally to take meaningful action to avert its tragic collapse.鈥�

Howson said he decided to announce a provision against the Msheireb contract in June last year because Msheireb had 鈥渆lected to appoint a third-party contractor to complete the works, which we disagreed with, at our cost鈥�.

Msheireb response to this claim was that when it appeared 鈥渙bjectively clear that Carillion was unable to complete the works, and was not paying its subcontractors鈥� the company had  鈥渓ittle option but to hire a new contractor鈥�, at cost to Msheireb.

Msheireb said given Carillion鈥檚 鈥渧ery disappointing performance鈥� it 鈥渁cted in a collaborative and co-operative manner鈥� by not terminating the contract 鈥渨hen its endemic failures to pay its supply chain first emerged鈥�.