Thursday, 21 January 2016

CARILLION MYTHBUSTERS & LIVERPOOL FC

Carillion state the following on their website under the page heading "Mythbuster & FAQ":

"Crown House, the only Carillion subsidiary to use the Consulting Association's database, stopped doing so back in 2004. The practice was proactively stopped because the HR manager responsible for checking the database believed it was wrong."

So let's break this statement down into two parts and bust the mythbuster.

Part 1.  "Crown House, the only Carillion subsidiary to use the Consulting Association's database, stopped doing so back in 2004. The practice was proactively stopped because the HR manager responsible for checking the database believed it was wrong."

It was my understanding (from close relationships with senior colleagues at the time) that the limited company trading status of Crown House Engineering was dissolved some time in the early or mid 1990’s to absorb/hide the severe losses the business was making each year into Carillion's multi billion pound accounts.

The first test therefore to corroborate Carillion's mythbusting statement would be to identify the actual trading company they refer to when they state "Crown House". If it did exist it would have reported an annual turnover of around £250 million (with losses of around £25 million a year) and would have traded from the early 1990's to 2004.

I doubt this exists, as I was employed by Carillion (then Tarmac) and cannot recall having any employment contract with any company called Crown House Engineering or similar. The bottom line here is that Carillion are trying to distance themselves from any association with the Consulting Association in this "mythbusting" statement, but if no legitimate trading company can be found for Crown House, then surely it was just an internal division of Carillion, thus making Carllion the Consulting Association member. A Duedil search reveals two companies:

1. Crown House Engineering (Scotland) Limited 02840266
This company has the following Directors listed:
1. Roger Robinson - Who was the person who recruited me to work for Carillion's in house agency NCS in 1993 and promoted me to the National Labour Manager for Crown House in 1994.
2. Brian Tock - Who took over as my boss when Roger moved to run Carillion's civil engineering business on 1 Jan 1996.
3. Alan Roger Port - Who became my boss following a slight restructure by Tock some time in late 1998 or 1999.

The list of Company Directors is here:

This does appear to be the Crown House that Carillion refer to, but it's a dormant company. It always has been! It certainly never traded from 1997 to 2004.

The accounts are detailed here:

What is also striking is that Robinson and Tock also become Directors of (yes you guessed it), Carillion Construction Limited on 1 Jan 1996. And yes, THIS IS A TRADING COMPANY!

I have stated in my evidence to the government select committee that the instruction for my Central Labour Department to use the services of the Consulting Association came from Carillion's Personnel Director, Frank Duggan.

2. Crown House Technologies Limited 05083313
This second company was set up on 24 March 2004 and currently reports an annual turnover of £265 million. It lists Ray O'Rourke as a Director.

This company is listed here:

Carillion's Mythbuster statement also includes the following:
"Crown House stopped being invoiced by the Consulting Association in 2004, before it was sold to Laing O'Rourke later on the same year."

The Deception

Carillion have consistently used these "mythbusting" statements to the government select committee, their construction clients, their pals in the press, their lawyers and the High Court Judges since their exposure in this scandal escalated.

All the real evidence strongly suggests that it simply cannot be true! 

1. There was no trading company called Crown House, it was Carillion Construction Limited in disguise.

2. My two managers, Robinson and Tock were directors of the dormant (non trading) Crown House Engineering (Scotland) Limited and Carillion Construction Limited from 1 Jan 1996.

3. It's all been smoke and mirrors from Carillion to distance themselves from their direct involvement with the Consulting Association in the 1990's and 2000's.

So now on to part 2 of Carillion's statement:

Part 2.  "Crown House, the only Carillion subsidiary to use the Consulting Association's database, stopped doing so back in 2004. The practice was proactively stopped because the HR manager responsible for checking the database believed it was wrong."

The person they refer to here is Liz Keates, who took over the running of the Central Labour Department (from where the blacklisting checks were processed) when I left in 2000.

The Consulting Association blacklisting files show that she subsequently accessed information from and provided information to the Consulting Association in relation to blacklisted workers on a level second to none in the industry until 2004. She was prolific!

The blacklisting checks were not proactively stopped in 2004 by her because she believed it was wrong. Carillion sold the mechanical and electrical business interests to Laing O'Rourke in 2004, who set up a brand new company to trade through.

Richard Lumby

Another point of interest is the appointment of Richard Lumby in 2000, who took over the management of Crown House from Brian Tock.

Lumby is listed as a Director of another dormant Carillion company 'Crown House Engineering Pension Trustee Limited' from 17 July 2000 to 27 May 2002, but there is no trace of him being a director of any trading company called Crown House.

Lumby did however become a Director of Carillion Construction Limited from 16 June 2001 to 11 Jan 2008.

Liverpool Football Club

Carillion are working on two large construction projects in Liverpool. One of them is the main stand at Liverpool football club. Many of the blacklisted workers were from Liverpool and are Liverpool supporters. Their applications to work on the project are being ignored.

I have therefore written to the Directors of the club this week to highlight Carillion's deception with regard to their involvement with the Consulting Association.



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