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The seven-storey Unite Hotel in Aston Science Park was commissioned by former general secretary Len McCluskey. Liverpool contractor Flanagan was given the job without a competitive tender and overcharged by at least £30m, according to subsequent investigations commissioned by current general secretary Sharon Graham after she took over in 2021 on a mission to clean the stables.

Graham also instructed a full re-audit of Unite’s 2021 accounts by auditor BDO. The auditor has now made an initial report, which found a “pervasive fraud environment” existed under the previous leadership. This has led to an impairment (write-down) of £66m on Unite’s accounts, which will be released by BDO in the coming weeks.

Unite’s report into the affair found that McCluskey signed the contracts, overruled Unite staff who raised questions about the firm, and overruled lawyers who advised against the contracts.

The union paid at least £110m for the project, but the valuation showed that the project was only worth £37.5m.

The union therefore spent more than £70m more than the complex is actually worth. Some of this may be due to legitimate cost increases, bad planning and bad decisions btu at least £30m of the difference is attributed to “excessive building costs” charged by Flanagan.

Unite has now released key findings from the independent investigations into allegations of historical fraud and corruption at the union. The document, called “Project Clean Up: Interim Report into Historical Allegations of Corruption,” is available at www.unitetheunion.org/media/ixgm3d5i/interim-report.pdf

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