Amid the fallout over collapsed British construction giant Carillion, a former company executive is being credited as the man who first unearthed the major problems facing the group.
Zafar Khan, who joined Carillion in 2011 as finance director for its Middle East and North Africa business, was promoted to group finance controller and then group financial director in January 2017.
Just nine months later, he was axed from the company. It came after an internal review was launched under his watch, which, last July, revealed the firm had spiralling levels of debt and had taken a £845 million (Dh4.2 billion) hit on problem contracts.
The massive profit warning sparked doubts over the company’s long-term future, as it also said it was exiting key markets in the Middle East. It was the first in a series of profit warnings to hit the 200-year-old firm, which finally collapsed on Monday having built up £900 million of debt and a £587 million pension deficit. Its lenders refused to provide it any further financial support, forcing it to enter compulsory liquidation.
Some within the industry view Mr Khan as a whistleblower-style figure, given the hand he played in exposing the huge black hole in the company. The previous incumbent, Richard Adam, held the role for the best part of a decade but the problems were not revealed until Mr Khan replaced him, sources have pointed out.
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‘Business as usual’ in UAE despite liquidation of UK construction firm Carillion
UK government questioned over Carillion contracts after profit warnings
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At the time of Mr Khan’s sudden departure, Carillion gave no explanation, but said his dismissal was effective immediately.
It is believed his exit was agreed with Keith Cochrane, who stepped in as Carillion's interim chief executive in July after the departure of Richard Howson. Mr Khan was replaced by Emma Mercer, who previously worked as the finance director of Carillion's construction services arm.
Carillion's liquidators PwC said the company is not able to comment now that it is in compulsory liquidation.
Prior to joining Carillion, Mr Khan worked at Associated British Ports Holdings and other industrial groups.
On Tuesday, the UK government ordered a fast-track investigation into the directors' past and present of the failed construction firm.
Their conduct will be probed to discover if they "caused detriment to those owed money", business secretary Greg Clark declared.
"Any evidence of misconduct will be taken very seriously," Mr Clark said.
Industry experts speaking to The National said that Mr Khan is one of the "good guys" due in large part to his efforts to conduct a thorough review into the group's finances.
However, some are more sceptical.
"It may be internally that he blew the whistle," said one source familiar with the matter. "But he didn't blow it loud enough.
“If they knew the full extent of the problems a year ago, they should’ve been made public and they weren’t. The company still paid dividends, and still traded as a going concern.”
Laith Khalaf, a senior analyst at Hargreaves Lansdowne, said that the review of the company's finances last year was less a case of "whistleblowing", and more "a function of management – and in this case, a belated function of management".
“We don’t know who was ultimately responsible for the review taking place, but the fact that it did take place obviously had a lot of nasty consequences for Carillion,” he said.
Mr Khalaf added that playing the blame game is less important for the government at this stage than trying to find the funds to maintain the public services carried out by Carillion’s staff.
“At the end of the day, we don’t really have much visibility about what happened within Carillion, and who pushed for what,” he said. “That’s now for the government to decide.”
“We can say that management as a whole did try belatedly to get to grips with the problems. But ultimately it turned out to be too late to stop the rot that eventually claimed the company.”
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Hidden killer
Sepsis arises when the body tries to fight an infection but damages its own tissue and organs in the process.
The World Health Organisation estimates it affects about 30 million people each year and that about six million die.
Of those about three million are newborns and 1.2 are young children.
Patients with septic shock must often have limbs amputated if clots in their limbs prevent blood flow, causing the limbs to die.
Campaigners say the condition is often diagnosed far too late by medical professionals and that many patients wait too long to seek treatment, confusing the symptoms with flu.
Company%20Profile
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Brahmastra%3A%20Part%20One%20-%20Shiva
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'THE WORST THING YOU CAN EAT'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded