Former Carillion finance chief handed 11-year boardroom ban
Former Carillion CFO receives 11-year suspension from boardroom for role in one of UK’s biggest corporate bankruptcies
Carillion’s former finance chief has been suspended for 11 years for his role in one of the UK’s biggest corporate bankruptcies.
Zafar Khan, who was CFO of the outsourcing giant for less than a year before it imploded, has been banned from holding any board position for more than a decade.
The construction group, which was involved in building hospitals and roads, collapsed in early 2018 with almost £7 billion.
At the time, it was working on about 450 public sector projects, putting thousands of people out of work and causing major delays in planned developments.
A spokesperson for the Insolvency Service said yesterday it had accepted “a disqualification bond” from Khan for 11 years “for his conduct as director of Carillion.”
Ban: Zafar Khan, who was Carillion’s chief financial officer for less than a year before it imploded, has been blocked from holding board positions
The Insolvency Service declined to comment further because “the trial of the remaining directors is ongoing and the trial will begin the week of October 16.”
Last year, Khan chief executive Richard Howson and Richard Adam, who was also head of finance at Carillion, were fined a total of nearly £1 million for giving misleading statements to investors about the finances.
Ben Drew, a partner at law firm Fladgate, said Khan’s ban was an example of how the Insolvency Service was “flexing its muscles.”
Khan said: ‘I have decided, for the sake of my family and to finally draw a line under this process, that I will make a commitment not to act as a director.
‘When I took up the position I was aware that the group was facing major commercial challenges and I put all my energy into overcoming these challenges.
“I’m sorry I wasn’t able to make enough of a difference in the short time I was on duty.”