As one of Britain's largest trade unions, Unite has given millions to the Labour Party over the years. Now it is engulfed in a scandal that has seen the police and Serious Fraud Office called in
A hotel built by the Unite while Len McCluskey was general secretary is being investigated by the Serious Fraud Office after concerns were raised by the union’s current leader Sharon Graham As one of Britain's largest trade unions, Unite has given millions to the Labour Party over the years. Now it is engulfed in a scandal that has seen the police and Serious Fraud Office called inRob is Special Projects Editor at i.
The legal papers which have emerged shine a spotlight on an extraordinary story that concerns so much more than just one man. It’s a scandal that has left one of Britain’s most powerful unions recoiling from claims involving alleged bribery, money laundering and fraud. He became one of McCluskey’s most trusted lieutenants. In 2019, when McCluskey tried to keep private his relationship with Corbyn’s chief of staff, Karie Murphy, he relied on Beckett’s help to prevent stories appearing in the media.the press enquiries about this relationship five years ago, that suggested McCluskey may have held undue influence over Corbyn through Murphy, were defamatory.
Sabisky is said to have been due to brief an executive committee about the costs in March 2020, only to die of a stroke 10 days before. The Birmingham complex – with 195 bedrooms and space to host 1,200 people at events, plus office space –finally opened in September 2020. It was built by the Liverpool-based contractor, the Flanagan Group, whose chief executive Paul Flanagan is a friend of McCluskey.
McCluskey deplored “malicious” press reporting as being “designed to smear the union”, the tribunal heard. The judge found that in another case, Beckett had been in a “personal relationship” with a woman prior to hiring her at his law firm – and after he moved to Unite, she took a job there running its benevolent fund.
The employment tribunal was only able to see a “heavily redacted” version of the barrister’s report but it refers to a sum of £14m “not featuring in the final accounts and it remaining a mystery as to how and when this figure had been assessed and then presumably paid to Flanagans”. And then the following month, Unite’s head office and Beckett’s home was raided by South Wales Police and HMRC investigating allegations of bribery, fraud and money laundering. These inquiries related to the union’s affiliate services overseen by Beckett. The investigation is still ongoing.
Sharon Graham has pledged to help uncover any wrongdoing at Unite before she became its leader The tribunal ruled that although there were “many potential criticisms” about the allegations against Beckett “there was substance behind them”.
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