Despite watching the company gorge and fatten from the contract trough, and stumble into increasing debt, the government continued to award them contracts. Outsourcing became a mantra of government efficiency. Carillion embraced the need. It ate itself on increasingly less lucrative contracts and increasing debt.
Of course, you could blame the civil servants who approved the contracts. Civil servants on massive pension guarantees (paid by our taxes) were quite happy to do their job – which was awarding contracts to the cheapest bid and going out for regular and expensive dinners with the Carillion bid teams to “review contracts”. Due diligence means cheapest. But, they appear to have paid absolutely no attention to ability of the contractor to actually deliver or opine on its financial prospects.
Yes, the British group said in a statement it had no choice but to "liquidate it with immediate effect", leaving some 43,000 employees, including 19,500 in the UK.
She explained that the government is supposed to provide the necessary funds to maintain public services provided by "Carillion" and constitute an important part of its activity through services provided especially to schools and the British army.
Yes...it is the same here with the public employee unions....government employees agreed to deal with the unions which were not feasible. Long after the politicians left office, the bills come due. Of course, a number of cities like Detroit couldnt afford them so they had to declare bankruptcy.
Carillion executives were big donors to the Conservative party, and their ex-CEO (still drawing a huge salary despite being ousted months ago) sits on a government committee. Lots of backs being scratched there.