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Written question asked by Lord Aberdare (Crossbench) on Thursday, 24 October 2024, in the House of Lords. It was due for an answer on Thursday, 7 November 2024. It was answered by Lord Timpson (Labour) on Wednesday, 30 October 2024 on behalf of the Ministry of Justice.

ISG Limited: Insolvency

Question

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.

Answer

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.

Secondary information

Type
Written question
Reference
HL1966
Session
2024-26
Related items
ISG Limited: Insolvency
Thursday, 26 June 2025
Written questions
House of Lords
ISG Limited: Insolvency
Wednesday, 2 July 2025
Written questions
House of Lords
Grouped for answer
Yes
Subjects
Contracts Insolvency Ministry of Justice Project bank accounts ISG Limited
Link
View this Written question on www.parliament.uk