{"id":61555,"date":"2018-01-16T04:15:42","date_gmt":"2018-01-16T09:15:42","guid":{"rendered":"http:\/\/www.gayfriendschat.com\/socialblog\/carillion-collapse-justice-ministers-under-fire-for-failing-to-wrest-control-of-prison-maintenance-from-firm\/"},"modified":"2018-01-16T04:15:42","modified_gmt":"2018-01-16T09:15:42","slug":"carillion-collapse-justice-ministers-under-fire-for-failing-to-wrest-control-of-prison-maintenance-from-firm","status":"publish","type":"post","link":"https:\/\/www.gayfriendschat.com\/socialblog\/carillion-collapse-justice-ministers-under-fire-for-failing-to-wrest-control-of-prison-maintenance-from-firm\/","title":{"rendered":"Carillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm"},"content":{"rendered":"

Carillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm<\/b>
\nPublic cash was thrown at Carillion to maintain British prisons despite ministers twice admitting the soon-to-go-bust firm was failing to deliver.<\/p>\n

Cells were left with smashed windows while inmates lived in squalor and, in some cases, were unable to access a towel and soap.<\/p>\n

But the Government still handed Carillion almost\u00a0\u00a3100m from the public purse over the course of two years despite warnings.\u00a0<\/p>\n

Outsourcing and construction giant Carillion – which employs 20,000 British people – went into liquidation on Monday after issuing a major profits warning last year.<\/p>\n

It has public sector or public\/private partnership contracts worth a staggering \u00a31.7bn, including providing school dinners, cleaning and catering at NHS hospitals, building HS2 and maintaining 50,000 army base homes for the Ministry of Defence.<\/p>\n

It had issued three profits warnings before collapsing and had been struggling under \u00a3900m of debt and a \u00a3587m pension deficit.<\/p>\n

Now justice ministers face a barrage of questions over why Carillion\u2019s prison maintenance contracts weren\u2019t wrested from the firm when serious evidence of failure started to emerge. They twice revealed in Parliament they were unhappy with the group\u2019s performance.<\/p>\n

In September, the then Prisons Minister Sam Gyimah told MPs:\u00a0\u201cI am particularly concerned about the rate of repairs in our prisons.<\/p>\n

\u201cCarillion is one company that has a contract and receives public funds to perform such work, and I have not been impressed by what I have heard about its response speed. I will meet its management to ensure that it delivers what we expect.\u201d<\/p>\n

Then in February 2017, Gyimah said he attempted to set up an action plan with Carillion, adding:\u00a0\u201cThe performance of Carillion caused sufficient concern that I met with Carillion senior executives to set out our expectations for immediate service improvement.\u201d<\/p>\n

Despite those admissions,\u00a0Carillion was\u00a0given \u00a399.5m for prison maintenance contracts since June 2015, including \u00a339.8m in 2017 alone.<\/p>\n

Prisons and probation contracts in the private sector were supposed to deliver \u00a3100m of savings, but\u00a0a damning report by HM Inspector of Prisons Peter Clarke was utterly damning about the state of the prisons estate last year.<\/p>\n

Clarke found cockroaches, filthy toilets, litter-strewn cells and electric wires hanging above shower cubicles.<\/p>\n

Shadow Justice Secretary Richard Burgon said: \u201cThis is not just about the shortcomings of Carillion but represents the Government\u2019s damaging obsession with privatisation and outsourcing across our justice sector and beyond.<\/p>\n

\u201cCarillion continued to pocket tens of millions of pounds per year from the taxpayer for running prison contracts even when it was clear to ministers themselves that it was failing to properly deliver basic maintenance services.<\/p>\n

\u201cWhen these essential repair services were outsourced, they didn\u2019t just fail to deliver the promised savings but made it more difficult for prison governors to manage prisoners and to help turn their lives around.<\/p>\n

\u201cCells were left unusable and prisoners unable at times to even get access to towels and soap.<\/p>\n

\u201cLabour has not only ruled out building any more private prisons but had already promised that in office it would look at returning prison service repairs contracts to the public sector. The Government must now bring those Carillion prison contracts back in house.\u201d<\/p>\n

Steve Gillan General Secretary of the Prison Officers Association called the conditions in jails \u201cinhumane\u201d and said urgent action was needed to carry out repairs that Carillion had not done.<\/p>\n

He said: \u201cWe need to know the contingency plans to keep our prisons operational. During the time Carillion had this contract the level of essential maintenance and work that is outstanding has spiraled out of control. This has resulted in loss of prison accommodation and inhumane conditions in our prisons\u201d.<\/p>\n

Gillan added: \u201cWhen these contracts were let the POA and other unions within the MoJ raised serious concerns and objections.\u201d<\/p>\n

Ministers from across government met for an emergency COBRA meeting to discuss the fallout from the Carillion crisis.<\/p>\n

The Government also faces questions over why it continued to hand Carillion public sector contracts despite the profits warning.<\/p>\n

Ministers said the company refused a last-ditch \u00a320m bailout, saying the firm and not taxpayers should foot the bill for Carillion\u2019s failure.<\/p>\n

Anger also erupted in Parliament over the bonuses handed to top Carillion bosses.<\/p>\n

The firm\u2019s former chief executive Richard Howson pocketed \u00a31.5m in salary, bonuses and pension payments during 2016 and, as part of his departure deal,Carillion agreed to keep paying him a \u00a3660,000 salary and \u00a328,000 in benefits until October.<\/p>\n

Former finance chief Zafar Khan, who left Carillion in September, will receive \u00a3425,000 in base salary for 12 months.<\/p>\n

Interim chief executive Keith Cochrane will be paid his \u00a3750,000 salary until July, despite leaving the company in February.<\/p>\n

The chair of the Business, Energy and Industrial Strategy Committee, Labour MP Rachel Reeves, said the huge salary payments should stop immediately.<\/p>\n

She said that despite Carillion\u2019s towering debts \u201cyear after year after year, they paid dividends out to their shareholders.\u201d<\/p>\n

Reeves hit out at Howson\u2019s continued salary payments and called for them to be stopped \u201cas of today\u201d before demanding a shake-up in the UK\u2019s corporate governance laws \u201cso that companies can\u2019t siphon off money to the detriment of suppliers, workers and ultimately the British taxpayer.\u201d<\/p>\n

Cabinet Office minister David Lidington told MPs that the role of the company\u2019s former and current directors in Carillion\u2019s collapse will be investigated by the Official Receiver, and they could face \u201csevere penalties\u201d.<\/p>\n

He said that while it would be wrong to pre-empt any inquiry, \u201cI can certainly well understand and appreciate that sense of unfairness\u201d.<\/p>\n

Referring to claims that the past and present board of directors could still benefit from planned payouts, Lidington said: \u201cThe Official Receiver does not only have power to investigate but the power to impose severe penalties if he thinks misconduct has taken place.\u201d<\/p>\n

The Government\u2019s response Carillion saga is set to dominate the news agenda this week, as it emerged failed to appoint a key Government oversight position sat vacant for three months towards the end of last year.
\n
\nwww.huffingtonpost.co.uk\/entry\/carillion-contracts-jusitce_uk_5a57ecbfe4b02cebbfda4956<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Carillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm Public cash was thrown at Carillion to maintain British prisons despite ministers twice admitting the soon-to-go-bust firm was failing to deliver. Cells were left with smashed windows while inmates lived in squalor and, in some cases, were unable to … Continue reading Carillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":2466,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107],"tags":[],"class_list":["post-61555","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\nCarillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm - GAYFRIENDSCHAT.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gayfriendschat.com\/socialblog\/carillion-collapse-justice-ministers-under-fire-for-failing-to-wrest-control-of-prison-maintenance-from-firm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Carillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm - GAYFRIENDSCHAT.com\" \/>\n<meta property=\"og:description\" content=\"Carillion Collapse: Justice Ministers Under Fire For Failing To Wrest Control Of Prison Maintenance From Firm Public cash was thrown at Carillion to maintain British prisons despite ministers twice admitting the soon-to-go-bust firm was failing to deliver. 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