Trade union Unite has told Sky News that the Serious Fraud Office (SFO) will investigate a controversial hotel and conference center in Birmingham that cost the union nearly £112 million.
The union, which was previously Labour’s biggest donor, says it believes there was “serious financial irregularities” when it was run by leader Jeremy Corbyn. Lynn McCloskey And his allies.
The hotel project, which was undertaken while Mr McCloskey was general secretary from 2011 until 2021, also included new union offices and was intended to save money on hotel rooms and conference bills.
But after initially costing £7 million, construction costs ballooned to £57 million before construction began. Unite told Sky News that the project, which was completed in 2020, had a total cost of £112 million.
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After Sharon Graham, Unite’s current general secretary, succeeded McCluskey in 2021, she launched an investigation into the project, led by senior counsel and Deputy High Court Justice Martin Bodery KC.
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After the hotel – which has 195 bedrooms and a 1,000-person conference center – was valued at just £29m by “forensic accountants”, it also pledged to recover any money owed to the union.
Announcing the SFO’s involvement, a Unite spokesperson told Sky News: “Sharon Graham has been subjected to three years of horrific and disgusting attacks since she was commissioned to carry out independent KC-led investigations into the Birmingham hotel project and further investigations into the union’s services.” .
The spokesman added, “These investigations revealed what we believe to be serious financial irregularities during the previous regime led by Len McCloskey.”
He continued: “The KC-led investigation into Birmingham hotel costs has been handed over to the Serious Fraud Office and independent forensic reports into the union’s services, while overseen by Howard Beckett, are currently part of an investigation being conducted by South Wales Police.” .
He added: “We are limited in what we can say at the moment due to the police investigation, but we will issue an interim report of the findings of the reports.”
“Mrs Graham has kept her promise to leave no stone unturned” in exposing any irregularities that occurred before her election.
“Unite is currently pursuing legal claims to recover the union’s lost funds, and the General Secretary has put safeguards in place to ensure such things never happen again.”
A SFO spokesman told Sky News: “In keeping with established practice to avoid prejudicing law enforcement activity, we can neither confirm nor deny any investigation into this matter.”
Mr McCloskey has been contacted for comment.