The Insolvency Service faced an £8 million financial setback after the bid to disqualify former Carillion directors from UK boardrooms was dropped, emerging from a government mandate.
In the wake of the construction and outsourcing giant's collapse in 2018, which caused severe disruptions to numerous government contracts, disqualification proceedings were initiated against eight executives. An analysis by the National Audit Office revealed Carillion's staggering £1.5 billion debt.
While three former Carillion executives, including the CEO and finance directors, faced disqualification, bids against five others, including the chairman, interim CEO, and committee chairs, were halted just before a trial earlier this month.
Responding to a parliamentary question, Minister Kevin Hollinrake disclosed that although costs related to three successful disqualifications were recovered, the overall expenses exceeded £8 million.
“The Department for Business and Trade has not incurred any costs in relation to the proceedings,” he said. “The Insolvency Service has incurred estimated costs in the proceedings against all eight directors of £11,064,519.
“Following the successful disqualification of the three executive directors, costs of £2,725,000 have been recovered.”