To ask His Majesty's Government whether certified payments will be paid to companies who have worked on projects run by ISG Limited on behalf of the Ministry of Justice where there are no funds in the project bank account (PBA); and whether there is a risk that PBAs will have failed to shield some parts of the supply chain from this insolvency event.
Answered on
30 October 2024
Since ISG Construction Limited entered administration on 20 September, the Ministry of Justice (MoJ) has undertaken a range of activity to understand the full impact on the Department and the supply chain in the construction sector. This has included working with EY, the appointed Administrator, to ensure the sums remaining within Project Bank Accounts are correct. The Department is in contact with a large number of subcontractors to ISG to determine what, if any, direct assistance the MoJ is able to provide. The Department remains committed to the timely payment of invoices in line with our obligations to do so.
The MoJ is undertaking a review of all potential payments arising from ISG entering administration, but given the scale and complexity of the task, this work is not yet complete.