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The financial woes of Interserve (“ Interserve shares tumble on widening losses ”, April 30) are caused by failures in senior executive management; precisely the same types of failures that led to the liquidation of Carillion.
One of the significant problems is the inability of Interserve to identify contractual risks accurately, particularly in the area of liabilities.
The risk register that has to be maintained for shareholders does not identify major contractual risks on a per-project contract basis.
Appointing big four accountants is pointless, from a contractual standpoint, because they do not possess the ability to identify and ameliorate risks in the terms and conditions of project contracts….
