South Wales police and HM Revenue and Customs raided union headquarters in central London on Thursday as part of an investigation into allegations of bribery, fraud and money laundering. Sources confirmed that the contracts related to the 170-room hotel and the conference center were part of their investigation. It is understood that the police are also examining contracts related to the services of members who were affiliated with the union. More than 20 officers arrived unannounced Wednesday at the union’s headquarters in Holborn, central London. Police searched a single office and removed dozens of files, documents and a computer. Police also searched a number of other locations in South Wales, Merseyside, Cheshire, North Wales, Greater London and Northamptonshire. A document leaked to the Guardian last January showed that costs for the Unite Hotel and Convention Center appeared to have more than doubled from 2015, when initial estimates were 35 35 million, to 2020. Construction was completed in December 2020 with cost £ 98 million The then-secretary general, Len McCluskey, told a Unite executive board meeting in January 2021 that costs had risen because of the union’s promise to hire union members, avoiding blacklisting companies. employed directly by workers and paying them at least national wages. The union’s executive committee concluded that the direct labor force, the high cost of construction in Birmingham and the change in the scope of the project pushed the price. The election of a new Unite secretary general last summer sparked calls for MPs and union leaders to investigate the cost. Newly-elected Secretary-General Sharon Graham launched an investigation in December into how the cost of the building turned out to be a “potentially significant loss” for the union. On Thursday, a Unite spokesman said: “A Unite employee is under criminal investigation by the police. “On Wednesday, April 6, the employee’s office at Unite HQ in Holborn, London, was accessed and searched by police on a warrant.” A police spokesman said: “The South Wales Police have carried out warrants in connection with allegations of bribery, fraud and money laundering. The warrants were issued Wednesday, April 6, at addresses in South Wales, Metropolitan, Merseyside, Cheshire, North Wales, Dyfed Powys and Northamptonshire Police. “The joint investigation with the Ministry of Revenue and Customs of His Majesty continues and several suspects will be investigated in due course.” On Friday, neither the police nor the union were added to their previous statements.
