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Carillion has removed Jol Bates, managing director of its rail division, in the aftermath of Network Rail鈥檚 decision to suspend the company from bidding for future projects because of its poor health and safety performance.

The move follows a restructuring of the 拢400m turnover division earlier this month, when it was announced that 300 of its 2500 rail staff were to be made redundant.

It has emerged that Richard Howson, second in command in the firm鈥檚 building division, has become the managing director of the rail business. It remains unclear whether Bates will stay in the business and report to Howson, or leave.

A company source said Howson鈥檚 brief was to overhaul the systems, procedures and safety culture to persuade Network Rail to lift the ban.

The source said: 鈥淩ichard is a natural schmoozer. He鈥檚 a very inclusive manager and that鈥檚 why the chief executive wanted him at the front line to turn the division around and win back the confidence of Network Rail.

鈥淗e also has great experience of the sharp end. He delivered the first PFI hospital at Dartford, Kent, so has had first-hand experience of managing safe sites.鈥�

In August Network Rail suspended Carillion from bidding for business because it was disappointed with the firm鈥檚 progress on a workforce safety improvement plan.

Richard is a natural schmoozer. He鈥檚 an inclusive manager, so he鈥檚 been put on the front line

Source at Carillion

Network Rail said Carillion's present contracts would remain in place, allowing the firm to demonstrate improvements and work towards ending its suspension.

A Carillion spokesperson said that Howson鈥檚 appointment had been made to refocus the business.

She said: 鈥淚t was felt that it was time to bring in new blood and look at new ways of doing things.鈥�

She added that the company was aware that Network Rail was monitoring its work and that there was no meetings planned to review the suspension. She said: 鈥淚t is an ongoing review.鈥�

John McDonough, Carillion鈥檚 chief executive, has also promoted Don Kenny, 51, previously the managing director responsible for six Carillion business units, to the position of executive director.

Steve Mogford, 50, has been appointed as a non-executive director. Mogford has been a main board director of BAE Systems for more than six years. He is the chief operating officer responsible for programmes.