UK contracting giant announced its liquidation on Monday after failing to secure rescue by government and banks
A £200 million ($275 million) dispute in Qatar over a project linked to the 2022 World Cup reportedly contributed to the financial woes of UK-based contracting giant Carillion.
Carillion, which has a variety of private and public service contracts in Britain and employs 43,000 staff worldwide, announced its immediate liquidation on Monday after the heavily-indebted company failed to secure a last-minute financial rescue by the government and banks.
According to the UK-based Times newspaper, when the company issued its first profit warning last July, one of its most problematic schemes was in the Gulf, where Carillion employs 19,000 workers.
Carillion reported announced that £314 million of a £845 million hole in its finances was attributed to work in the Middle East and the Gulf.
The newspaper said the dispute related to a contract won in 2011 as a joint venture with a Qatari company, for a 2022 World Cup related project backed by the Qatar Foundation.
The Times reported that Carillion executives believe they are owed £200 million for work it completed but the Foundation claimed it is owed money by Carillion over failings to fulfil contractual obligations.
Carillion had also worked on the Dubai Canal and Oman’s Royal Opera House.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.