Carillion - Neoliberal sleaze on a vast scale

Carillion's collapse had exposed "systemic flaws" in corporate Britain and showed regulators were "toothless".

Even as the company publicly began to unravel, the board was "concerned with increasing and protecting generous executive bonuses".

Long term obligations, such as adequately funding Carillion's pension schemes, were treated with contempt.

Two select committees also attacked the big four accounting firms for approving Carillion's accounts despite its spiralling debts.

MPs also accused regulators of being too "passive" in tackling Carillion's problems, and said government failures had made the collapse of the outsourcing firm "if not inevitable, then at least a distinct possibility".

They said contractors that handled "swathes" of public services needed to be closely monitored.

But they said the government had failed to spot the risks because of its "semi-professional part-time" system of oversight.

Ernst & Young was paid £10.8m for "six months of failed turnaround advice"

Deloitte received £10m to be Carillion's internal auditor, but was either "unable or unwilling" to identify failings in financial controls, or "too readily ignored them"

KPMG failed to question Carillion's financial judgements while PwC continues "to gain" as its official receiver "without adequate scrutiny".

So there we are, just a small selection of words circulating this morning on the stunning arrogance, greed and corporate sleaze on a vast and destructive scale. Neoliberal government and big busines are hostile to every interest except the maximisation of income for their friends. And the corruption of the four major auditors is powerfully exposed. These 'big four' are central institutions of the neoliberal project. They have a revolving door into HM Revenue and Customs. They are not fit to practice.

This scandal has left a trail of devastation across public services, small companies, and former employees.

Neoliberalism is destructive of everything except the bottom line in those fat tax haven accounts.

http://www.bbc.co.uk/news/business-44129678

Yes... that PFI stuff that was introduced by Labour....

Carillion's collapse had exposed "systemic flaws" in corporate Britain and showed regulators were "toothless".

 

The regulators are "toothless".

The regulators are "toothless".

Regulators have had their teeth systematically drawn by the tories as a central component of their neoliberal project.

Yes... that PFI stuff that was introduced by Labour....

Yes... that PFI stuff that was introduced by John Major's Conservative government.

Facts are annoying, aren't they?

Regulators have had their teeth systematically drawn by the tories as a central component of their neoliberal project.

Rubbish. Ofcom, Ofgen and Ofwat have all been called "toothless" for decades.

From 2007:

Ofcom — useless or toothless?

http://adrianmonck.com/2007/04/ofcom-useless-or-toothless/

2008:

Water charge is another sign of rip-off Britain

https://www.yorkshirepost.co.uk/news/water-charge-is-another-sign-of-rip-off-britain-1-2498566

Rubbish. Ofcom, Ofgen and Ofwat have all been called "toothless" for decades

Yes, decades, like the neoliberal project that began in earnest in 1979.

Yes... that PFI stuff that was introduced by John Major's Conservative government.

 

Facts are annoying, aren't they?

So why were they originally OK? Many projects on time, and under budget. Was it because Labour just went crazy and started using them for everything without checking the small print?

Yes, decades, like the neoliberal project that began in earnest in 1979.

Makes you wonder what happened from 1997-2010 to stop it then doesn't it?

So why were they originally OK? Many projects on time, and under budget. Was it because Labour just went crazy and started using them for everything without checking the small print?

 

Nothing wrong with well regulated private businesses; regulation has been on the decline for decades.

Yes... that PFI stuff that was introduced by John Major's Conservative government.

 

Facts are annoying, aren't they?

And when you get them wrong you get your face rubbed in it. The PFI contracts for Carillion were set up by Labour. Carillion didn't even exist under Major's Govt.

The scandalous collapse of Tarmac, one of the biggest names in UK construction, in a maelstrom of sleaze and jeering corruption is a failure of vast and far-reaching proportion, exposing the poisonous sinews of the neoliberal project. But it's supporters are already seeking to distract, divert, confuse! It's their only strategy, again and again.

Ignore their devious words and just look for yourselves - notice the trail of public devastation and private misery that the directors left behind whilst they were busy stuffing their mouths with gold. Just look at the sleaze of KPMG signing off their accounts. The scandal is yet more evidence that neoliberalism is vicious, exploitative and utterly corrosive!

Neoliberalism? For the 1% at the expense of everyone else!

Yes... that PFI stuff that was introduced by Labour....

That's some pretty impressive blame shifting.