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Contractors demand answers from NIHE over Carillion
Contractors are calling on Northern Ireland’s Housing Executive (NIHE) to explain why it handed Carillion a £133m energy services deal just months before the firm’s collapse.
Carillion was one of three companies which struck a deal in December to replace boilers across NIHE’s 86,500-strong stock.
After the construction and services giant entered liquidation in January, NIHE was forced to switch its Carillion contracts to the UK division of Engie, a French energy company.
The Northern Ireland Specialist Engineering Contractors’ (SEC) Group – an umbrella body for construction industry trade associations – says its members have suffered heavy losses as Carillion’s supply chain for the NIHE contracts broke down.
One small business lost £150,000, the group said.
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SEC Group NI submitted requests under the Freedom of Information Act asking for details about why Carillion was awarded the contract but the NIHE refused to provide an answer, citing commercial sensitivity.
Alfie Watterson, spokesperson for SEC Group NI and regional manager of the Electrical Contractors’ Association, said: “I simply do not understand this response since Carillion has been in liquidation since 15 January and, therefore, will have no interest in this information being made public.
“NIHE’s refusal will only serve to arouse suspicions that there is something to hide.”
He added that the NIHE had “showed a complete lack of interest in the treatment of Carillion’s supply chain”.
The NIHE said that as the Carillion contracts were transferred wholesale to Engie they are still commercially sensitive.
Carillion Energy Services’ 2016/17 accounts – its last reported accounts before winning the NIHE boiler contract – showed a £16m loss on a turnover of £42.8m.
The NIHE did provide minutes of a board meeting held on 25 November 2016, which revealed that Carillion had passed a financial standing test.
Under the test, Constructiononline Category Values, suppliers are given a value called a notation which takes into account annual turnover, average values of references obtained and net assets.
However, the NIHE said it did not hold information about Carillion’s subcontracts.
A spokesperson for the NIHE said: “The Housing Executive’s contracts with Carillion Energy Services Limited novated to Engie in February 2018.
“We received a FOI request asking for details of the tenders submitted by Carillion Energy Services Limited for the various contracts.
“These tenders included individual work practices and costings, and, as these transferred with the novation of the contracts, our view is that commercial sensitivity applies and that disclosure would put the current contractor at a disadvantage in future tenders.”
Update: at 19.38am 07/08/18 a statement from the NIHE was added to the story.
