Thursday , March 30 2023

Outsourcing surge after Carillion collapse "Awesome", unions say Business


Trade unions have accused the government of not learning from the collapse of Carillion, but pumping even more money into outsourced service providers a year after the company's high-level death.

According to the GMB Union, which reported nearly GBP 2 billion, the contracts awarded to the Capita and Interserve contracts, which were awarded to the Capita and Interserve contracts. profit warnings.

GMB said it showed that the government "insulted" for privatization, despite the warning signs of Carillion's collapse, which managed public sector contracts to provide services such as prison maintenance and school dinner.

GMB National Secretary Rehana Azam said: "Another explanation for this might be the huge increase in outsourcing contracts that Carillion gained in the year and when other outsourcing giants look like life support?"

GMB's criticism comes with the first anniversary of Carillion's failure, which cost the taxpayers about £ 150 million, and has led to significant delays in two million pound hospital construction projects in Liverpool and Birmingham.

The United Kingdom, the largest UK trade union, insulted that there had been no action against former Carillion directors accused of deputizing Members for 'recklessness, doubt and greed', repeating calls for criminal investigations.

Unite's Assistant Secretary General Gail Cartmail said: “It is staggering that, a year after the biggest corporate failure in today's UK history, the government has continued to operate as usual.

“The fact that no Carillion participant has taken any action against them shows that regulators are unable to do their job or that the existing laws are too weak. If it is the last, we need better, tougher laws.

"One year after the collapse of Carillion, the government has to stop the surprise and take effective action to highlight bandit capitalism from the UK. ”

The government has put in place measures to ensure that companies responsible for key public sector contracts develop "live wills" to ensure the smooth running of their services in case of financial failure.

But Unite said the measures were not far enough to reform the public procurement system.

A representative of the Cabinet Office, who manages the outsourcing of public sector contracts and faces criticism of its role in the administration of Carillon's breast, said the government had taken steps to prevent recurrence.

She said: "This government has made great strides in improving the way we work with the private sector, including demanding companies to pay promptly to suppliers and test" live wills "for critical contracts, allowing for the rapid establishment of contingency plans, if necessary. ”

Accounting Accountant The Financial Reporting Board (FRC), whose members criticized the fact that companies, including KPMG, are "chronically passive" at the time of audits, are still investigating the circumstances surrounding its failure.

The Insolvency Service, a business, energy and industrial strategy department, is also investigating the case and began interviewing former company directors last year.

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