Accounting watchdog, the Financial Reporting Council (FRC), is to investigate the conduct of former Carillion finance directors Richard Adam and Zafar Khan.
The probe relates to the preparation and approval of the financial statements of the collapsed contractor for the years ended 31 December 2014, 2015 and 2016, as well as the six months ended 30 June 2017.
The FRC will also be examining the preparation and reporting of other financial information during the period 2014-17.
Adam served as a board director at Carillion between April 2007 and December 2016.
He was succeeded as finance director by Khan, who had been with Carillion since 2011.
However, Khan lasted less than a year in the role after helping to unearth problems at the contractor that led to an £845m writedown, announced in July last year.
The news comes following the FRC’s announcement earlier this year that it is investigating the audit of Carillion’s financial statements by KPMG.
The FRC has the power to impose unlimited fines against finance directors who have fallen short of the standards expected of them, and can also prevent them from practising.
Sanctions are determined by an independent tribunal.
Investigations of this kind can typically take up to two years, but a spokesman for the FRC said the body hoped that the probe, although complicated, could be completed as quickly as possible.
Meanwhile, the Insolvency Service is also looking at the conduct of Carillion’s directors, following a request by Greg Clark, secretary of state for business, energy and industrial strategy.
The FRC said: “The FRC is liaising closely with the Official Receiver, the Financial Conduct Authority, the Insolvency Service and The Pensions Regulator to ensure that there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion.”
Clark is due to appear before the Work and Pensions Select Committee in the House of Commons tomorrow, as it continues its investigation into the Carillion collapse.
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It is about time that the government put a freeze on all of the director’s assets here and any found around the world, if it is found that it is their fault all assets should be sold to help all the small contractors and all those out of work and the pension fund.
As my son was one of those made redundant and is still looking for work since before Christmas.
Let’s put on the screws on all responsible for this