Carillion axes Zafar Khan who unearthed £845m black hole

The finance director who helped unearth major problems at embattled Carillion is leaving after less than one year in the job.

Zafar Khan will be replaced by internal candidate Emma Mercer as part of a major management shake-up that has raised questions about the engineer’s stability as it battles for survival.

Khan took over in January from long-serving Richard Adam. 

Carillion finance director Zafar Khan will be replaced by internal candidate Emma Mercer

Carillion finance director Zafar Khan will be replaced by internal candidate Emma Mercer

A subsequent review of the business led to an £845million write-down announced in July.

Dividends have been suspended and the business put under review as it revealed problems on major contracts and said it was getting out of key markets.

Carillion gave no reason for Khan’s sudden departure but said it was effective immediately.

He will be followed out of the door by Richard Howson, who stepped down as chief executive after the disastrous trading announcement and has been serving out his notice as chief operating officer. 

Howson, 49, will leave on September 30.

Construction services director Adam Green and services managing director Nigel Taylor will also leave at the end of the month, while group strategy director Shaun Carter will leave at the end of the year.

Analysts at UBS said the timing of the changes was odd given the company is due to report results on September 29.





Courtesy: Daily Mail Online

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