Dispute for $275m in Qatar lead to the $275 million of Carillion

A dispute in Qatar over a project worth £200 million ($275 million) linked to the 2022 World Cup reportedly contributed to the financial trouble 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, after facing the heavily-indebted company failed to secure a last-minute financial rescue by the government and banks, announced its immediate liquidation on Monday.

As per the UK-based Times newspaper, when the company issued its first profit warning in July last year, one of its most problematic project was in the Gulf, where Carillion hires 19,000 workers.

Carillion reportedly 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 confirm they have 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 Oman’s Royal Opera House and Dubai Canal.

 

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