Directors at collapsed engineering giant Carillion were too busy “stuffing their mouths with gold” to worry about the workers and should face the possibility of disqualification, according to Birkenhead MP Frank Field.

In the final report of an inquiry into the spectacular failure of the company, two select committees also attacked the Government for “lacking” decisiveness and bravery to tackle failures in corporate regulation.

Carillion became a “giant and unsustainable corporate time bomb” said the Work and Pensions and Business Select Committees.

MPs said that following a series of hearings into Carillion’s liquidation, it was clear that the board presided over “rotten corporate culture”.

They said the Insolvency Service should carefully consider whether former directors breached their duties under the Companies Act and should be recommended for disqualification.

Mr Field, chairman of the Work and Pensions Committee, said: “A board of directors too busy stuffing their mouths with gold to show any concern for the welfare of their workforce or their pensioners.

“They rightly face investigation of their fitness to run a company again.

“This is a disgraceful example of how much of our capitalism is allowed to operate, waved through by a cosy club of auditors, conflicted at every turn.

“Government urgently needs to come to Parliament with radical reforms to our creaking system of corporate accountability.

“British industry is too important to be left in the hands of the likes of the shysters at the top of Carillion.”

Rachel Reeves, who chairs the Business Committee, said: “Carillion’s collapse was a disaster for all those who lost their jobs and the small businesses, contractors and suppliers left fighting for survival.

“The company’s delusional directors drove Carillion off a cliff and then tried to blame everyone but themselves.

“Their colossal failure as managers meant they effectively pressed the self-destruct button on the company.

“However, the auditors should also be in the dock for this catastrophic crash.

“They are guilty of failing to tackle the crisis at Carillion, failing to insist the company paint a true picture of its crippling financial problems.

“The sorry saga of Carillion is further evidence that the Big Four accountancy firms are prioritising their own profits ahead of good governance at the companies they are supposed to be putting under the microscope.”

Ms Reeves said the Competition and Markets Authority should look to break up the so-called Big Four accountancy firms – KMPG, PwC, Deloitte and EY -which she added had pocketed millions of pounds for their lucrative audit work.

“It is a parasitical relationship which sees the auditors prosper, regardless of what happens to the companies, employees and investors who rely on their scrutiny.”

The committee said Ernst & Young was paid £10.8 million for “six months of failed turnaround advice”, while Deloitte received £10 million to be Carillion’s internal auditor, but were either “unable or unwilling” to identify failings in financial controls, or “too readily ignored them”.

Thousands of jobs have been lost as a result of Carillion’s collapse in January.

Former finance director Richard Adam, who was named in the MPs’ report as the “architect of Carillion’s aggressive accounting policies” and was previously accused of “dumping” shares worth hundreds of thousands of pounds at the first possible moment, said in a statement:

“‘Despite retiring over a year before Carillion went into insolvency, I am deeply saddened by the events that have since overtaken the company.

“The reasons for the collapse are clearly complex; however, I reject the unwarranted conclusions the committees have reached concerning my role at the company.

“I have objected to the committees about quotes that they have misattributed to me. I look forward to contributing to the due process and conclusion of the various investigations that are still ongoing.”

A government spokesperson said: “Our priority has been the continued, safe running of public services and to minimise the impact of Carillion’s insolvency. The plans we put in place have ensured this.

"The government wants to see a strong and varied supplier base where companies of all sizes benefit from long-term and stable government contracts.

“That’s why we have recently announced a number of measures to support government suppliers – strengthening our commitment to prompt payment; protecting staff, businesses and small suppliers from irresponsible directors.

“We welcome the report from the joint select committee and will respond fully in due course.”