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Accountants ‘feasted on a £71m slice’ of Carillion

Built on sand: 989 jobs have gone

BRITAIN’S big four accountancy firms have been savaged by MPs for taking £71.6million from Carillion in the past ten years.

The business and pensions committees are investigating the construction giant’s demise. They revealed that KPMG banked £20.2million since 2008, PwC £21.1million, Deloitte £12million and EY £18.3million.

Labour MP Frank Field, chair of the work and pensions committee, said: ‘The image of these companies feasting on what was soon to become a carcass will not be lost on citizens.

‘The former directors of Carillion are, unlike their pensioners, suppliers and employees, all right.These figures show that, as ever, the big four are all right, too. All of them did extensive — and expensive — work for Carillion.’

PwC, which is handling the liquidation process, came in for particular criticism. Mr Field said: ‘PwC managed to play all three sides — the company, pension schemes and the government — to the tune of £21million and are now being paid to preside over the carcass as special managers.’

Questions have been asked about why problems at the firm were not spotted sooner. The accountancy watchdog has opened an investigation into KPMG over its audits of Carillion.

Yesterday 59 Carillion employees lost their jobs, taking the total to 989.

MPs seek urgent energy price cap

CAPPING energy prices must be introduced urgently to stop millions of people being ripped off, MPs have warned.

The business, energy and industrial strategy committee wants a temporary absolute cap to fix the ‘broken’ energy market, criticising the Big Six suppliers’ lack of will and regulator Ofgem’s failure to protect vulnerable customers.

Labour’s Rachel Reeves, who chairs the select committee, said: ‘Energy is an essential good and yet millions of customers are ripped off for staying loyal to their energy provider.’