Former Carillion finance director Zafar Khan has been disqualified as a director for 11 years.
According to the Insolvency Service, which is overseeing Carillion’s liquidation, Khan caused the contractor to rely on “false and misleading financial information for the preparation of the 2016 consolidated financial statements”.
The 2016 return misstated profits in relation to the execution of five major construction contracts: Royal Liverpool University Hospital, Battersea Power Station, Aberdeen Western Peripheral Route, Midlands Metropolitan Hospital and Msheireb Phase 1B, in Qatar.
The Insolvency Service said: “The amount of the misstatement is valued at at least £208.5m, together with a year-end adjusted loss of at least £61.7m, in contrast with [Carillion] PLC’s reported pre-tax profit of £146.7m.”
“The Insolvency Service, acting on behalf of the Secretary of State for Business and Trade, has accepted an undertaking to disqualify Zafar Iqbal Khan for 11 years for his conduct as a director of Carillion.
In 2021, the Insolvency Service took legal action to ban eight of the collapsed contractor’s directors, including Khan. The trials of the other seven councilors are due to take place in October, although any of the remaining councilors could enter voluntary disqualification commitments before then.
The Insolvency Service declined to comment on whether it was negotiating voluntary settlements with other former Carillion directors.
