Last December, the accounting giant EY presented a proposal to the failing mega-business Carillion to break it up and sell its profitable parts, keeping it from collapsing and sticking the British taxpayer with billions of pounds' worth of unfunded pension liabilities.
Carillion's directors decided not to take the advice, which would have generated at least £364m to offset the state's expenses from the collapse, in part because ministers in Theresa May's Conservative government "did not believe it appropriate to offer business advice to directors."
The Cabinet Office confirmed it had seen the options presented by EY but declined to comment on how it responded. A spokesman said: “Throughout this process, the government has been clear that its priority is to ensure that public services continue to run properly, and we regularly meet with our strategic suppliers and monitor their financial health. Since the collapse of Carillion, our plans have ensured that public services can continue to run as normal.”
But the Guardian understands that government officials, who were holding weekly meetings to monitor Carillion’s health, did not believe it appropriate to offer business advice to directors.
A source who was present at discussions between the company, government and the pension trustees said: “I think they [the government] thought that if they could get to the end of January, they could find new finance and the company would survive, maybe in a different structure.
Government let slip chance to retrieve £364m from Carillion | Business [Rob Davies/The Guardian]
(via Naked Capitalism)
Images Money, CC-BY)
On Thursday, Tesla denied media reports that it fired employees who chose to stay at home during the coronavirus pandemic, rather than expose themselves to possible infection at Elon Musk’s California factory.
A Black man in Detroit was wrongfully arrested and detained by police who mis-identified him with a false facial recognition hit. The case of Robert Williams, an innocent person who was held in police custody for a day, is the first publicly reported case of artificial intelligence resulting in a false arrest in the United […]
Eddie Bauer, Magnolia Pictures, Ben & Jerry’s, REI, and Patagonia are some of the brands that have suspended Facebook ad campaigns over the platform’s reckless content moderation practices that allow political and COVID-19 disinformation to proliferate.
With all due respect to our vegetarian friends, there might be nothing more intrinsically linked to the 4th of July holiday than a big ole cookout. Sure, fireworks and celebrating the birth of a constitutional republic are great too, but showing off your cooking prowess with a brilliantly seared, mouth-watering slab of grade-A American beef […]
We’re at the midway point of 2020. So…how’s the year going for you so far? Yeah…we can guess. But while there’s a lot about 2020 we can’t directly control, maybe a little retail therapy can help make you feel better. Sure, the 39 items we gathered together can absolutely bring a smile to your face. […]
When revved-up kids used to dribble a basketball through the kitchen or practice their footwork with a soccer ball in front of the television, exasperated parents would often just send ‘em outside to play. But these days, sending kids out might not be the best course of action. Despite all the changes, many budding young […]