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One of Britain’s biggest trade unions had a “pervasive fraud environment”, a leaked auditors’ report has concluded.
Global tax advisory firm BDO found there had been a culture at Unite that “did not challenge the appropriateness of transactions” and failed to ensure appropriate financial reporting.
It concluded “dominant personalities and a weak control environment facilitated opportunities to commit fraud” at the union.
The audit was ordered by general secretary Sharon Graham shortly after she entered her role in 2021 amid questions about accounting and spending on building a hotel and conference centre in Birmingham.
Its findings were presented to the union’s executive council on Friday.
Unite said the probe uncovered a £53.8 million “impairment” related to the difference between the original valuation of the Birmingham project used to calculate the “book value” by the auditors at the time, and the real value.
The BDO report also said there had been “unusual relationships” between former senior staff and Unite’s customers and suppliers, according to the BBC which obtained a copy of the 35-page document ahead of its publication.
In response, Ms Graham, who has pledged to strengthen internal governance practices, said: “On behalf of Unite’s 1.2 million-plus members, I promised on my election that I would uncover the truth about historic alleged corruption related to the Birmingham hotel project.
“This process has quite frankly been an ugly one, where I have endured attacks and smears from those with much to lose, but they have not deterred me.
“The re-audit is in its final stages and as we move to completion, I will ensure steps are taken so that this can never happen again and we have already started the process of getting our money back.
“Over the last three years of my leadership, I have refocused our union on to the jobs, pay and conditions of our members and we have secured a union that is financially strong and able to fight for workers.”
