Unite announces inquiry into £98m hotel complex built under Len McCluskey

HAYSIE

One source told Sky News the gap between the cost of building the complex and the value of the completed project was at a deficit of "tens of millions of pounds".



The project in Birmingham, which includes new union offices, was intended to save on hotel rooms and conference bills. Yet after an initial estimate of £7m, the building costs ballooned to £57m before construction even began.

Now complete, Unite has confirmed the total expenditure on the project is more than £98m.


https://news.sky.com/story/unite-announces-inquiry-into-98m-hotel-complex-built-under-len-mccluskey-12501105





Unite union accused of ‘potential criminality’ in hotel scandal



Two independent reports into a multi-million pound hotel and conference centre built by the Unite union have now been handed to police.

Sky News said one of them found evidence of “eye-watering” overcharging of large contracts.

It is facing a £70 million loss over the controversial hotel project.

A source said: “There was pricing and overcharging that would make your eyes bleed.

“There are such discrepancies in the money that the police may want to take things further.”

Unite spent nearly £100 million on the hotel complex, but two independent valuations put its worth at less than £30 million.

The union is already the subject of a fraud, bribery and money laundering investigation. In April, the union’s London headquarters were raided by police.

In a statement, the union said: “Due to very serious concerns about potential criminality that have emerged, both these reports are now being shared with the police.

“The police have requested that Unite does not release the contents of the reports while they are conducting their inquiries. Whilst these are ongoing Unite will not be making any further comment.

https://www.msn.com/en-gb/money/other/unite-union-accused-of-potential-criminality-in-hotel-scandal/ar-AA153Mmu

HAYSIE

https://www.youtube.com/watch?v=n1n2EuolX_E

Essexphil

I think it is important to point out the important distinction between this sort of thing and the likes of, say, Michelle Mone.

It appears entirely possible that some people have mis-spent Unite Members money.
Likewise, it seems entirely possible that, during the early stages of the pandemic, some people have mis-spent taxpayers' money.

The first is primarily a matter for Unite Members. The second is a matter for all of us.

And no amount of deflection by the Fail/Getsworse changes that

HAYSIE

Essexphil said:

I think it is important to point out the important distinction between this sort of thing and the likes of, say, Michelle Mone.

It appears entirely possible that some people have mis-spent Unite Members money.
Likewise, it seems entirely possible that, during the early stages of the pandemic, some people have mis-spent taxpayers' money.

The first is primarily a matter for Unite Members. The second is a matter for all of us.

And no amount of deflection by the Fail/Getsworse changes that

I saw a report on this the other night.
It appears a bit of a mess.
More will come out after the reports are published.
They pointed to one contract that was worth something silly like £90,000, and the company got paid £1.2 million.

HAYSIE

Essexphil said:

I think it is important to point out the important distinction between this sort of thing and the likes of, say, Michelle Mone.

It appears entirely possible that some people have mis-spent Unite Members money.
Likewise, it seems entirely possible that, during the early stages of the pandemic, some people have mis-spent taxpayers' money.

The first is primarily a matter for Unite Members. The second is a matter for all of us.

And no amount of deflection by the Fail/Getsworse changes that

Here you go.

https://www.youtube.com/watch?v=yKQbujUbHjk

HAYSIE

Essexphil said:

I think it is important to point out the important distinction between this sort of thing and the likes of, say, Michelle Mone.

It appears entirely possible that some people have mis-spent Unite Members money.
Likewise, it seems entirely possible that, during the early stages of the pandemic, some people have mis-spent taxpayers' money.

The first is primarily a matter for Unite Members. The second is a matter for all of us.

And no amount of deflection by the Fail/Getsworse changes that

He should have been more careful about who the contracts were awarded to.


Len McCluskey, Ms Graham's predecessor as general secretary, presided over the project and is facing questions as to why the development's main construction contract was awarded to a company owned by a friend.

The development's key contract was awarded to Liverpool-based Flanagan Group, a firm run by McCluskey ally Paul Flanagan.

A health and safety contract was awarded to SSC, a company owned by David Anderson, the son of former Liverpool mayor Joe Anderson.

Mr Flanagan and both David and Joe Anderson have been arrested on suspicion of bribery as part of a Merseyside Police corruption investigation not linked to Unite.

All three deny wrongdoing and have been released under investigation. There is no suggestion of any criminal wrongdoing in the union's dealings with either company.

https://news.sky.com/story/unite-announces-inquiry-into-98m-hotel-complex-built-under-len-mccluskey-12501105