Zafar Khan (businessman)

Last updated

Zafar Khan
Born
Zafar Iqbal Khan

August 1968 (age 54)
NationalityBritish
OccupationBusinessman
Titleformer finance director, Carillion
TermJanuary-September 2017
Predecessor Richard Adam
SuccessorEmma Mercer

Zafar Iqbal Khan (born August 1968), [1] is a British accountant and businessman, and was the finance director of Carillion from 1 January to 11 September 2017, shortly before it went into liquidation in January 2018. In July 2023, Khan was disqualified from acting as a director of a company for 11 years.

Career

Khan trained as a chartered accountant with Ernst & Young. [2]

Khan followed Richard Adam from Associated British Ports joining Carillon in 2011, as finance director for the Middle East and North Africa business, and was its group financial controller from 2013. [2] Khan was the finance director of Carillion from August 2016 to 11 September 2017 (and a main board director from 1 January to 11 September 2017), and succeeded "long-serving" Richard Adam, who had been finance director since 2007. [1] [2]

Khan was succeeded as chief financial office by Emma Mercer, who had worked for Carillion in a decade-long career. [3] Khan would continue to receive his salary of £425,000 until July 2018. [3]

Khan was one of six Carillion directors who appeared before House of Commons select committee hearings on 6 February 2018. Rachel Reeves, chair of the business committee, suggested Khan "fell asleep at the wheel" during his tenure. Khan told the committee he thought he had "spooked the board with results of the contract review". [4]

On 17 March 2018, it was reported that the Financial Reporting Council's conduct committee would announce an investigation into the conduct of Richard Adam and Zafar Khan (both members of the Institute of Chartered Accountants in England and Wales). [5] The investigation, confirmed on 19 March 2018, would focus on the preparation and approval of Carillion's financial reports for 2014, 2015 and 2016, and the six months to 30 June 2017, as well as provision of other financial information from 2014 to 2017. [6]

Khan was criticised in the final report of the Parliamentary inquiry into the collapse of Carillion, published on 16 May 2018. The report concluded:

"Zafar Khan failed to get a grip on Carillion’s aggressive accounting policies or make any progress in reducing the company’s debt. He took on the role of Finance Director when the company was already in deep trouble, but he should not be absolved of responsibility. He signed off the 2016 accounts that presented an extraordinarily optimistic view of the company’s health, and were soon exposed as such." [7]

The report also recommended that the Insolvency Service should consider whether the former Carillion directors, including Khan, could be disqualified from acting as a director. [8] In November 2020, the Financial Conduct Authority said some Carillion directors had "acted recklessly" and released "misleadingly positive" market updates before it collapsed. As a result, the FCA said it had sent notices to some (unnamed) former Carillion directors warning of possible enforcement action (possible sanctions include public censure, fines and suspensions from holding certain positions). [9] In January 2021, the Insolvency Service said it would seek to ban eight former Carillion directors, including Khan, from holding senior boardroom positions. [10] [11] In July 2022, the FCA announced it had decided to fine Khan £154,400. The former director was appealing against the penalty. [12] [13] In July 2023, it was announced by the Insolvency Service that Khan had been disqualified from acting as a director of a company for 11 years. [14]

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References

  1. 1 2 "CARILLION PLC - Officers (free information from Companies House)". beta.companieshouse.gov.uk. Retrieved 19 January 2018.
  2. 1 2 3 "Executive Profile: Zafar Khan". Bloomberg LP. Retrieved 19 January 2018.
  3. 1 2 "Carillion collapse: The key personnel at the firm". sky.com. Retrieved 19 January 2018.
  4. ↑ Tute, Ryan (6 February 2018). "MPs slam former Carillion bosses as firm's problems are revealed". Infrastructure Intelligence. Retrieved 8 February 2018.
  5. ↑ Boffey, Daniel; Davies, Rob (17 March 2018). "Former Carillion finance directors expected to face investigation". Guardian. Retrieved 19 March 2018.
  6. ↑ Morby, Aaron (19 March 2018). "FRC launches probe into Carillion finance directors". Construction Enquirer. Retrieved 19 March 2018.
  7. ↑ Carillion: Second Joint report from the Business, Energy and Industrial Strategy and Work and Pensions Committees of Session 2017–19 (PDF). London: House of Commons. 2018. p. 90. Retrieved 16 May 2018.
  8. ↑ Carillion: Second Joint report from the Business, Energy and Industrial Strategy and Work and Pensions Committees of Session 2017–19 (PDF). London: House of Commons. 2018. p. 93. Retrieved 16 May 2018.
  9. ↑ Price, David (13 November 2020). "Carillion directors 'recklessly' misled the market, says watchdog". Construction News. Retrieved 13 November 2020.
  10. ↑ Partington, Richard (13 January 2021). "Legal bid launched to ban ex-Carillion directors from top boardroom roles". Guardian. Retrieved 13 January 2021.
  11. ↑ "Carillion directors face boardroom bans". The Construction Index. 14 January 2021. Retrieved 14 January 2021.
  12. ↑ Prior, Grant (28 July 2022). "Three former Carillion bosses fined £870k by watchdog". Construction Enquirer. Retrieved 29 July 2022.
  13. ↑ Stein, Joshua (28 July 2022). "Former Carillion bosses face £870,000 fines". Construction News. Retrieved 29 July 2022.
  14. ↑ Davies, Rob (3 July 2023). "Ex-Carillion finance chief given 11-year company director ban". theguardian.com. Guardian. Retrieved 3 July 2023.


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