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Carillion's board presided over a "rotten corporate tradition" and was culpable for its "pricey collapse", two committees of MPs have concluded.
They additionally accused the federal government and Big Four accounting corporations of failing to cease Britain's second greatest building agency from going below.
The MPs stated regulators ought to now take into account banning the previous administrators from serving on different firm boards.
Carillion collapsed below a £1.5bn debt pile in January.
It employed 43,000 folks, round 20,000 of them within the UK, and hundreds of jobs have been misplaced.
It additionally held quite a few public contracts, reminiscent of the upkeep of faculties and prisons, all of which needed to be introduced below authorities management.
Rachel Reeves MP, chair of the enterprise (Beis) committee, stated: "Carillion's collapse was a catastrophe for all those that misplaced their jobs and the small companies, contractors and suppliers left combating for survival.
Carillion: Six charts that specify what occurred
Where did Carillion's issues come from?
"The firm's delusional administrators drove Carillion off a cliff after which tried accountable everybody however themselves."
"However, the auditors also needs to be within the dock for this catastrophic crash. They are responsible of failing to sort out the disaster at Carillion, failing to insist the corporate paint a true image of its crippling monetary issues."
What are the administrators accused of?
In their report, the Work and Pensions and Beis committees known as Carillion's rise and fall "a story of recklessness, hubris and greed".
They singled out former administrators Richard Adam, Richard Howson and Philip Green for explicit scrutiny, saying the lads had expanded the agency via ill-judged acquisitions whereas hiding Carillion's monetary issues from shareholders.
Probe into Carillion finance administrators
Carillion pension scheme was 'ignored'
"Even as the corporate very publicly started to unravel, the board was involved with rising and defending beneficiant government bonuses," the MPs added.
"Long time period obligations, reminiscent of adequately funding Carillion's pension schemes, had been handled with contempt."
They stated the administrators had introduced themselves throughout parliamentary hearings as "self-pitying victims" of "unforeseeable mishaps".
But Carillion's former finance director, Richard Adam, stated he rejected the committees' conclusions and objected to quotes within the MPs report, which he stated had been misattributed to him.
Former chairman Philip Green stated: "The board at all times sought to make selections on one of the best out there data and with one of the best skilled recommendation; moreover we at all times strived to behave within the pursuits of the corporate and all its stakeholders."
What are the auditors accused of?
The two choose committees additionally attacked the Big Four accounting corporations for approving Carillion's accounts regardless of its spiralling money owed.
They stated Ernst & Young was paid £10.8m for "six months of failed turnaround recommendation", whereas Deloitte obtained £10m to be Carillion's inner auditor, however was both "unable or unwilling" to establish failings in monetary controls, or "too readily ignored them".
They additionally stated KMPG had did not query Carillion's monetary judgements, whereas PwC was "persevering with to achieve" as its official receiver "with out ample scrutiny".
Ms Reeves stated the competitors authorities ought to take into account breaking apart the Big Four accountancy corporations "to assist improve competitors and cope with conflicts of curiosity".
Carillion collapse sparks 'massive 4' probe
Carillion pension scheme was 'ignored'
But a KPMG spokesman stated it believed it had performed its audits of Carillion "appropriately", and Ernst & Young stated it was "extraordinarily upset that regardless of all efforts the enterprise was not rescued".
Deloitte stated it was "upset with the conclusions of the committees" whereas PwC defended its function as official receiver.
"Our precedence has been to maintain public providers operating safely throughout the nation whereas saving hundreds of jobs," stated PwC chairman and senior accomplice, Kevin Ellis.
What are regulators and the federal government accused of?
The MPs additionally accused regulators of being too "passive" in tackling Carillion's issues, including that the federal government had "nurtured" an atmosphere during which the collapse of an outsourcing agency was "a distinct risk".
"When swathes of public providers are affected, shut monitoring of publicity to dangers would appear important," the report stated.
Regulator was warned over Carillion pensions
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"Yet we have now a semi-professional part-time system that doesn't present the required diploma of perception for presidency to handle dangers."
A authorities spokeswoman stated: "Our precedence has been the continued, protected operating of public providers and to minimise the influence of Carillion's insolvency. The plans we put in place have ensured this.
"The authorities desires to see a robust and various provider base the place firms of all sizes profit from long-term and secure authorities contracts.
She added: "That's why we have now not too long ago introduced a variety of measures to assist authorities suppliersstrengthening our dedication to immediate cost; defending workers, companies and small suppliers from irresponsible administrators.
"We welcome the report from the joint choose committee and can reply absolutely sooner or later."