Taxpayers may be forced to pay another huge bailout as private contractor Carillion is just 'days' from £1.5billion debt collapse amid anger that Transport Secretary Chris Grayling handed the firm HS2 rail deal while 'knowing it was in trouble'
'Transport Secretary Chris Grayling faces mounting criticism for his department's decision last year to give the ailing construction company Carillion a share of contracts for the HS2 railway line.
The accusation came as officials have warned that Carillion could enter administration on Monday.
Mr Grayling is accused of giving the firm a part of the work only a week after the company issued a shock profit warning that in effect was the beginning of its dire financial woes.
He has insisted that at the time he was given 'secure undertakings' about the health of the company.
But Andrew Adonis, the former chair of the government's national infrastructure committee, said the minister had behaved negligently.
'They got HS2 contracts from him after their troubles emerged in the summer, raising big questions about his due diligence and judgment,' he said.
Labour's shadow Cabinet Office minister Jon Trickett was equally critical.
'It has been clear for months that Carillion has been in difficulty but the government has continued to hand over contracts to the company even after profits warnings were issued,' he said.
'Jobs and public services are now at risk because the Tories were blinded by their commitment to a failing ideological project of introducing the profit motive into taxpayer-funded services.
'Labour urges the government to stand ready to intervene and bring these crucial public sector contracts back in-house in order to protect Carillion's employees, pension holders and British taxpayers.''
Read more: Taxpayers may be forced to pay another huge bailout as private contractor Carillion is just 'days' from £1.5billion debt collapse amid anger that Transport Secretary Chris Grayling handed the firm HS2 rail deal while 'knowing it was in trouble'
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