Carillion and the state of our government's funding system

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Caporegime
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I probably don't need to tell you what the deal is with Carillion but in case you missed it the TL;DR is that over the last 52 weeks their share price has gone from £239 to 19p. Despite this, the government was still handing them contracts until recently (citation needed, heard this from a reliable source but haven't verified it myself). This morning's Metro highlights that the company had £1.5b in debts which us taxpayers are going to pay for.

Carillion has messed around with pension pots, failed spectacularly over an extended period of time but because I suspect many snouts were in the trough (I love that expression) many turned a blind eye and now the average joe is getting stiffed for it.

To add insult to injury, the top execs are keeping their salaries for months and will also likely be getting a bonus.

My question is this:

How ****** up is our government that this is allowed to happen? This whole system is completely broken and something needsti change. Many are still licking their wounds from the BHS fiasco, the steel industry meltdown and now this? Come on, this can't be allowed to continue.

All salaries need to be instantly frozen pending an investigation or at least reduced to the bare minimum until we have ascertained who is responsible and punished them. And no, I don't just mean a fine, I mean jail the ***** and make them work in soup kitchens feeding the very people they ****** over.


Unbelievable.
 
Thekwango said:
Why would brexit have anything to do with mismanagement of a company?
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There are many companies that are only justy profitable, with Brexit a great many simply wont survive the currency devaluation, sales losses, and spiraling expenses.
 
D.P. said:
There are many companies that are only justy profitable, with Brexit a great many simply wont survive the currency devaluation, sales losses, and spiraling expenses.
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Talking rubbish again.

Glad non of my cash to going to help this company out. Let it fail and make the banks and investors pay.

Leave this thread in GD please mods
 
deuse said:
Talking rubbish again.

Glad non of my cash to going to help this company out. Let it fail and make the banks and investors pay.

Leave this thread in GD please mods
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Problem is now many workers that are totally innocent in all this are now out of work, if they can't find work then it's more on jobseekers looking at poverty and the cycle continues.
 
Doogles said:
Problem is now many workers that are totally innocent in all this are now out of work, if they can't find work then it's more on jobseekers looking at poverty and the cycle continues.
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Do you think that every company that goes bust should be rescued by the government?

I'm hoping jail time for the top bosses.
 
Doogles said:
Problem is now many workers that are totally innocent in all this are now out of work, if they can't find work then it's more on jobseekers looking at poverty and the cycle continues.
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If the Government always cleared up the mess they would be condoning mismanagement and the driving of businesses into the ground by the board. In a truly free market banks and businesses would be allowed to fail. Otherwise, there should be legislation that rewards good corporate management and punishes the bad. Fines and prison sentences should be the norm. Difficult to prove, mind. Also, why are companies allowed to withdraw money from the company pension scheme? It isn't the company's money.
 
Not every company should be rescued but neither will i say no company should be. It is decided on a case by case basis. Wouldn't even be too bad if certain companies required 'rescuing' so that they can receive a much needed reshuffle and essentially be used for the benefit of the public services.

It is one thing to revive a company that withered due to an nonviable market and another to revive it with the intention of reforming it into a new viable and useful entity.

Is Carillion worth rescuing? Well, that is dependent on what we intend to do with the company.
 
deuse said:
Do you think that every company that goes bust should be rescued by the government?

I'm hoping jail time for the top bosses.
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No I'm not saying that but they need to step in before things get out of hand, I'm not saying to bail them out but when the Execs start making dodgy calls it's time for something to happen, whenever you see companies go down it's always the Execs that come out nicely, just look at BHS. Put yourself in the shoes of an employee, have a mortgage that you can no longer pay and looking at having your house taken away with a kid on they way, not good is it? Time for that council house after all but none exist.

In this country everything seems to be short term, nothing made for the future generations most of our manufacturing has been sold off and we use to be one of the top jet producers in the world yet that is all gone now.
 
The_Abyss said:
Citation required for evidence that the taxpayer is going to cover Carillion's £1.5bn of debt.
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panthro said:
This; because as far as I am aware there is no bail out offer by the government and therefore no effect on the taxpayer.
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This was the article I skimmed over, although reading it more in depth it seems I misinterpreted it.

I'm of the opinion that this company needs to be gutted at the corporate level, broken down in to smaller companies with fresh blood at the helm.

Interesting sidenote:

Philip Green is the name of the chairman of BHS and Carillion. Different people, same name, both chiefs of failed companies who fudged the pension pot for their own benefit.
 
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