The fallout from the Carillion case continues. On 16 February 2026 the UK Financial Conduct Authority issued a Final Notice and fined Richard Howson, former group chief executive of Carillion plc a total of £237,700 after he withdrew his challenge to the original penalty decision made in 2022. He was CEO of the group until July 2017. In October 2023 he was banned from acting as a company director for six years.
Howson, one of two executive directors on the Board, was aware that Carillion UK and Ireland construction business was in trouble. He failed to reflect this in company announcements or alert its board and audit committee, leading to poor oversight. Ultimately the company had a £200 million black hole.
Howson’s responsibilities included working closely with the group finance director (the other executive director on the board) to ensure Carillion communicated effectively with investors and had appropriate internal control processes. Provisions made on four of the largest projects operated by Carillion were insufficient to cover the loses expected and he did not inform the Board or the Audit Committee about these under-provisions.
In Ireland, there were at least six school projects affected by the collapse of Carillion which were:
- Loreto College, Wexford;
- Coláiste Raithín, Bray;
- Ravenswell Primary School, Bray;
- Tyndall College, Carlow;
- Carlow Institute of Further Education, and
- Eureka Secondary School, Kells.
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If you would like a quotation for a tailored audit training session to include the latest accounting changes in FRS 102 (leasing and revenue recognition) dealing with issues like the Carillion case and how to spot these issue in your work, please contact is at john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
- Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
- Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
- ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
