‘Potential criminality’ at Unite over hotel project, union reveals

Potential “criminality” has emerged after inquiries into the construction of a hotel and conference centre for Unite, the union has said.

Unite said its general secretary Sharon Graham would do “all in her power” to uncover any wrongdoing in the construction and spending related to the Birmingham centre.

Two separate probes found evidence of “eye-watering” overcharging on building contracts in connection with the project, according to Sky News.

A spokesperson for Unite said: “Due to very serious concerns about potential criminality that have emerged, both these reports are now being shared with the police.”

They said Ms Graham was “committed to doing all in her power to recoup any monies lost, by all means necessary and holding anyone responsible to account.”

“It is clear this transparency would not have happened without the determination of the general secretary to ‘leave no stone unturned’ to get to the truth,” the spokesperson added.

The union is believed to have spent almost £100m on the Birmingham hotel complex project, but previous valuations have reportedly put its worth at only £30m.

Sources told Sky News the gap between spending and the value of the building is “minimum £31m but could easily be more”. One told the broadcaster: “There was pricing and overcharging that would make your eyes bleed.”

Ms Graham, who took over from Len McClusky as union leader in August 2021, commissioned “forensic” probes by a senior lawyer and accountancy firm Grant Thornton.

Mr McCluskey earlier last year described it as a “sensible investment of members’ money, resulting in a world-class facility that will return an income for our union for generations to come”.

Unite remains the Labour party’s largest donor. The union donated more than £728,00 during in the three months from July to September, the latest Electoral Commission figures show.

A union spokesperson said: “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.”