Carillion: A Case Study in Corporate Greed and the Corruption of the British State

The collapse of Carillion in 2018 was a major scandal that exposed the deep-rooted corruption within the British state. This article will examine the company's history, its close ties to the government, and the role of deregulation in its eventual downfall.

Carillion's History

Carillion was founded in 1999 through the merger of two smaller construction companies. The company quickly grew into one of the largest construction and outsourcing firms in the UK. Carillion was involved in a wide range of projects, including the construction of hospitals, schools, and prisons. The company also provided outsourcing services to the government, such as managing IT systems and facilities maintenance.

Bandit Capitalism: Carillion and the Corruption of the British State

by Bob Wylie

4.2 out of 5

Language	:	English
File size	:	2194 KB
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Carillion's Close Ties to the Government

Carillion had close ties to the British government. The company was a major donor to the Conservative Party, and its executives had regular meetings with government ministers. Carillion also benefited from a number of government contracts, which were often awarded without competitive bidding.

The Role of Deregulation

The deregulation of the construction industry in the 1980s and 1990s played a significant role in Carillion's rise to prominence. Deregulation reduced the number of regulations that construction companies had to comply with, which made it easier for companies to cut costs and increase profits.

Carillion's Downfall

Carillion's downfall began in 2017, when the company announced a series of profit warnings. The company's share price plummeted, and it was eventually forced to file for bankruptcy in 2018.

The collapse of Carillion exposed a number of deep-rooted problems within the British state. The government's close ties to the company allowed Carillion to win contracts without competitive bidding, and the lack of regulation allowed the company to cut costs and increase profits at the expense of safety and quality.

The Impact of Carillion's Collapse

The collapse of Carillion had a significant impact on the UK economy. The company employed over 20,000 people, and its collapse led to the loss of thousands of jobs. The collapse also caused a number of projects to be delayed or cancelled, which had a negative impact on the economy.

The Government's Response

The government's response to the collapse of Carillion was widely criticized. The government was accused of being too close to the company, and of failing to take action to prevent its collapse.

In response to the criticism, the government launched a public inquiry into the collapse of Carillion. The inquiry is due to report its findings in 2020.

The collapse of Carillion was a major scandal that exposed the deep-rooted corruption within the British state. The government's close ties to the company, and the lack of regulation, allowed Carillion to cut costs and increase profits at the expense of safety and quality.

The collapse of Carillion had a significant impact on the UK economy, and it is important that the government learns from its mistakes. The government must take steps to ensure that companies are not allowed to profit at the expense of the public interest.

Bandit Capitalism: Carillion and the Corruption of the British State

by Bob Wylie

4.2 out of 5

Language	:	English
File size	:	2194 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	377 pages
Lending	:	Enabled

FREE