The Serious Fraud Office is investigating the construction of a hotel and conference center owned by one of the UK's biggest unions, the BBC can reveal.
Unite the Union spent a total of £112 million of its members' money on the Birmingham project.
The building has since been valued at just £29million, suggesting £83million was wasted.
An investigation by KC and commissioned by Unite general secretary Sharon Graham also identified a missing £14 million, described as a “mystery” and not included in the project’s final accounts.
Unite told the BBC that the matter was “now with the Serious Fraud Office” and that Ms Graham, who took over as general secretary of Unite in 2021, “would leave no stone unturned to find out if he there had been financial wrongdoing.”
An SFO spokesperson said: “In line with long-standing practice to avoid harm to law enforcement activities, we can neither confirm nor deny any investigation into this matter. »
Len McCluskey, Sharon Graham's predecessor as general secretary, had defended the project and said in 2021 that it was a “fantastic investment”.
He later tweeted that the internal investigation was “reasonable and will answer all questions.”
A lawyer for Mr McCluskey told the BBC that due to the ongoing investigation it would be inappropriate for him to comment.
The Birmingham project was intended to be an investment for Unite as well as allowing the union to save money on hotel and conference costs.
Construction was completed in 2020 and the development includes the four-star 195-room Aloft Birmingham Eastside hotel and 1,000-capacity conference centre, as well as Unite's regional offices.
Employment tribunal documents reveal the union believes its ruling executive council was misled about the true value of the project.
In 2022, South Wales Police raided the union's headquarters in London as part of a separate investigation into corruption, money laundering and fraud.
The force told the BBC the investigation was ongoing.
A Unite spokesperson said: “It is important to note that Sharon Graham has faced repeated attacks from those with much to lose since she launched these investigations, both from within and 'outside the union.
“It was sickening and horrible, but she remained determined to find out the truth.
“We are also taking legal action to recover money lost by the union and the general secretary has put safeguards in place to ensure things like this never happen again.” »
