A former Carillion executive has been fined over the collapsed Wolverhampton-based contractor’s finances. The ex-chief, Howson, was responsible for working alongside the finance director to ensure clear communication with investors.
However, the Financial Conduct Authority (FCA) concluded that warning signs of financial risk within Carillion’s construction division were not disclosed to the board or the audit committee. Instead, those bodies were shown information that portrayed the unit’s finances more positively for 2016–2017.
The FCA stated that Howson failed to address these risks appropriately and was knowingly involved in sharing information that could be false or misleading, effectively acting with recklessness.
Steve Smart of the FCA described Carillion’s failure as substantial. He noted that jobs were lost, public-sector projects faced jeopardy, and investors—who relied on accurate disclosures—suffered significant losses. He added that the regulator’s commitment to accountability for the company and its senior leaders remained unwavering.
In the previous month, two former finance directors, Richard Adam and Zafar Khan, were fined by the FCA for their roles in the dissemination of misleading statements. Their combined penalties totaled £371,700 (£232,800 for Adam and £138,900 for Khan).
This case underscores the FCA’s stance that misleading financial communications can have broad, real-world consequences for employees, taxpayers, and investors alike, and it demonstrates a continued effort to sanction top executives when integrity in reporting is compromised.
