Carillion bosses rapped by watchdog for “misleading” investors before 2018 collapse

CARILLION and some of its former directors got a fierce smack on the knuckles from the City watchdog today which accused them of issuing “false or misleading” information to the stock market.

The construction giant fell into administration two years ago under the weight of £1.5 billion in debts.

It employed 43,000 people and was at the heart of many key government building projects, including hospitals and schools. Projects included the Battersea Power Station and the Anfield Stadium expansion.

Critics said it was taking on too many risky projects, especially overseas, and that it was stretched too thin. The shares crashed as the City grew uneasy about its finances.

Today the Financial Conduct Authority issued a warning notice against the company and “certain previous executive directors”. The FCA did not name the directors. 

The company faces a “public censure not a financial penalty”. The directors face a tribunal, and possibly a ban from corporate life.

The FCA said Carillion and the directors:

* gave false or misleading signals as to the value of the shares

* failed to maintain adequate procedures

* failed to act with integrity towards investors

The directors, “made misleadingly positive statements about Carillion’s financial performance generally and in relation to its UK construction business in particular”.

The watchdog added: “The FCA considers that Carillion and the relevant executive directors acted recklessly in relation to the above matters.”

Carillion made no immediate comment.

The former directors have previously apologised, blaming Brexit, interest rates and other woes for the difficulties the company endured.

 MPs Rachel Reeves and Frank Field said after seven directions appeared by MPs in February 2018: “This morning a series of delusional characters maintained that everything was hunky dory until it all went suddenly and unforeseeably wrong.