Retiring CJ business editor picks his Top 5 stories of past 17 years

Contract Journal business editor John Leitch, scourge of many construction boardrooms over the last 17 years, is to retire. 

“With so much gloom and doom around at present, I thought it best for me to retire before I upset any more chief execs,” he said.

For anyone wanting to wish John a happy retirement, he will be having leaving drinks at All Bar One in Sutton from 12.30 on Wednesday 1st July.

In the meantime, CJ.com asked John, who started covering the business desk in 1992, to pick the five stories he has been proudest of during his tenure as business editor. They are as follows:

1. The Wrekin ruby 

An unbelievable mix of ingredients made this saga completely gripping. How could anyone get away with such a wheeze - presenting a raw chunk of crystal-like rock accompanied by a fake document purporting to show it was worth £11m?

Wrekin Construction's board even claimed they ran a check - so where did that document go? What about Wrekin's accountants - why were they gullible? And Wrekin's bank lenders - wouldn't you think they'd have investigated?

Gloriously funny to read at a safe distance but such a cruel trick for an individual to play on Wrekin's staff.

2. Ballast's pension black hole

Ballast Nedam mercilessly pulled the plug on its Ballast UK division after it had been losing money for years. Plus there was a gaping hole in its pension fund deficit.

John was at the creditors' meeting where it was revealed that there were debts of £164m... the biggest element within this being the £84m owed to the pension fund.

Employees close to retirement saw their pension evaporate before their eyes. It was an example of everything that's bad in corporate legislation.

3. Carillion's takover of Mowlem

The weeks before and after this deal was struck were awash with rumour. When the deal was struck Carillion vigorously claimed it had pulled off a blinder - and in one way it had as the Ministry of Defence had privately confirmed the £11bn Allenby Connaught project was in the bag.

On the other hand, sources revealed to John that Mowlem had reached the limit of its £130m debt facility, had fudged its year-end debt figures and had drawn up accounts that were little more than window-dressing.

In short it was within three weeks of going under... and could have been snapped up for free - well, for £1 if Ray O'Rourke returned to the scene.

4. Costain's Houdini act

John's early years covered the period in the 1990s when Costain ran up the biggest losses in construction history, with the figure running to a staggering £800m.

It was a painful time, the stories were grim, but when Costain finally pulled through the CJ business editor got a letter of thanks for covering the saga in a responsible manner.

5. John Morgan buys Amec

When Amir Briko arrived as Amec's chief executive he promptly put Amec's entire construction division up for sale. No wonder - the previous top management had been sweeping big issues under the carpet.  

But with Amec finally taking the pain, with the risk saying at home, John Morgan smelt a bargain. He and his entire team at Morgan Sindall were put on the case over one long weekend and tabled a bid on the Monday morning, catching the rest of the pack cold.

Morgan then invited John in to provide an inside track on his costings and how the Amec divisions would all fit in to an enlarge Morgan Sindall.