Former group finance directors at collapsed outsourcer Carillion fined total of £371,700 for providing misleading statements, failing to notify board and audit committee about scale of financial issues, and acting ‘recklessly’
The Financial Conduct Authority (FCA) has fined Richard Adam, 68, and Zafar Khan, 57, former group finance directors at Carillion for serious breaches of listing rules on disclosure.
The FCA said Adam and Khan were both aware of serious financial troubles at Carillion’s UK construction business but ‘failed to reflect this in company announcements or alert the board and audit committee, leading to poor oversight’.
Following a lengthy dispute with the FCA over the original decision notices, Adam and Khan have been given six-figure financial penalties for their role in misstating the company’s financial position before its collapse in January 2018.
Adam, a qualified chartered accountant, was group finance director and a board member at Carillion from April 2007 to 31 December 2016, until he retired at the end of the year, and has been given a financial penalty of £232,800 by the FCA.
