Britain’s fraud watchdog is investigating the Unite trade union’s £112million spend on a hotel and conference centre in Birmingham, it has been revealed.
The Serious Fraud Office, as reported by the BBC, has launched a probe into the project amid claims of a ‘mystery’ £14million sum missing from the final accounts.
There have been long-standing questions over Unite’s spending on the controversial building, which has been independently valued at just £29million.
Unite is one of the Uk’s largest trade unions with more than 1.2million members and has donated more than £500,000 to mostly left-wing Labour MPs this year.
After replacing Len McCluskey – an ally of ex-Labour leader Jeremy Corbyn – as Unite’s general secretary in 2021, Sharon Graham ordered an independent inquiry into the Birmingham project.
This concluded there was a £30million difference between what was paid for the hotel and what it should have cost.
The controversial Birmingham complex houses Unite’s regional headquarters, a hotel and a conference centre
Unite told the BBC the case is ‘now with the Serious Fraud Office’ and Sharon Graham will ‘leave no stone unturned in finding out if there was any financial wrongdoing’
After replacing Len McCluskey – an ally of ex-Labour leader Jeremy Corbyn – as Unite’s general secretary in 2021, Ms Graham ordered an independent inquiry into the Birmingham project
Unite told the BBC the case is ‘now with the Serious Fraud Office’ and Ms Graham will ‘leave no stone unturned in finding out if there was any financial wrongdoing’.
An Serious Fraud Office spokesperson said: ‘In line with long established practice to avoid prejudice to law enforcement activity, we can neither confirm nor deny any investigation into this matter.’
The Birmingham complex houses Unite’s regional headquarters, a hotel and a conference centre.
A Unite spokesperson said: ‘It is important to note that Sharon Graham has had to endure repeated attacks by those with much to lose since she launched these inquiries, from both inside and outside the union.
‘These have been sickening and horrendous but she has remained determined to get to the truth.
‘We are also pursuing legal claims to recover money lost to the union and the general secretary has put safeguards in place to ensure that such things can never happen again.’
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