The BBC can reveal that the Serious Fraud Office is investigating the construction of a hotel and conference center owned by one of the UK’s largest unions.
Unite spent a total of £112m of its members’ money on the scheme in Birmingham.
The building has since been valued at just £29m, meaning £83m was wasted.
A KC-led investigation commissioned by Unite general secretary Sharon Graham also found £14m missing, which was described as a “mystery” and did not appear in the project’s final accounts.
Unite told the BBC that the case was “currently being handled by the Serious Fraud Office” and that Ms Graham, who took over as Unite’s general secretary in 2021, would “spare no effort to establish whether there was any financial impropriety”.
An SFO spokesman said: “In line with our long-standing practice of avoiding compromising law enforcement activities, we can neither confirm nor deny any investigation into this matter.”
The Birmingham scheme is intended to be an investment for Unite and save the union on hotel and conference costs.
Completed in 2020, the development includes a 195-bedroom four-star hotel, a 1,000-seat conference center and Unite’s regional offices.
Employment tribunal documents show the union believes its ruling executive committee was misled about the true value of the project.
In 2022, South Wales Police raided the union’s London headquarters as part of a separate bribery, money laundering and fraud investigation.
Police told the BBC an investigation is ongoing.
A spokesman for Unite said: “It is worth noting that since Sharon Graham launched these investigations she has had to endure numerous attacks from those who have huge losses, both from within and outside the union.
“It was disgusting and horrific, but she was still determined to find out the truth.
“We are also pursuing legal claims to recover funds lost by the union and the general secretary has put safeguards in place to ensure this never happens again.”
