
Gaps in Len McCluskey's memory must be filled one way or another
RAY MCMANUS/SPORTSFILE
In his last major investigation for The Times before his untimely death, Andrew Norfolk, the reporter whose work exposed the grooming gangs scandal, turned his forensic eye to the Unite trade union.
In a series of reports for this newspaper, Mr Norfolk revealed that a company owned by a friend of the union's then general secretary, Len McCluskey, was paid at least £95 million for the construction of a hotel and conference centre in Birmingham initially meant to cost £7 million. This week an independent report commissioned by Sharon Graham, Mr McCluskey's successor at Unite, showed the situation to be even worse.
Ms Graham had asked Martin Bowdery KC, a barrister specialising in construction, to investigate the hotel project, for which Mr McCluskey was a vocal advocate. The inquiry concluded that the cost of the hotel had in fact ballooned to £112 million. That was £74.5 million more than its market value. As a result, Unite has had to wipe £66 million from its accounts. An audit accompanying the KC's report concluded that under Mr McCluskey's leadership there was a 'pervasive fraud environment' at Unite. The Serious Fraud Office (SFO) is pursuing its own investigation.
Mr McCluskey, an avowed socialist and admirer of Jeremy Corbyn, never shy of voicing his opinions on Labour politics, clearly has serious questions to answer. Mr Bowdery's report claims that the union leader was flown to watch his beloved Liverpool FC in two Champions League finals, in Kyiv and Madrid, by the Flanagan Group, the construction firm alleged to have overcharged Unite by at least £30 million when building the hotel. The report also lists five other occasions on which the union leader was taken to watch Liverpool, enjoying matchday hospitality courtesy of the Flanagans, whom he described as 'good friends'. Mr McCluskey said that as far as he could recall he paid his own way.
Unite officials and lawyers were uneasy about Flanagan, which the report said had a history of 'poor performance, delays [and] cost overruns'. Mr McCluskey is said to have overruled them. He denies doing so, and through his lawyers has denounced Ms Graham's inquiry as 'inaccurate, selective and highly misleading'. The ultimate judgment will be made by the SFO but Ms Graham believes there is enough evidence to support criminal action against two 'very senior' former Unite officials. South Wales police are undertaking an investigation involving alleged bribery, fraud, money laundering and tax evasion.
It is not often that The Times agrees with Ms Graham but she is to be commended for her courage in taking on vested interests within a vast and powerful union of some 1.2 million members straddling the private and public sectors. She told this newspaper of the 'horrendous' attacks she endured from supporters of Mr McCluskey after promising to investigate the hotel project. She has described being 'followed home' and subjected to 'despicable online abuse'.
There is much to criticise about Unite's positioning under Ms Graham's leadership, not least its intransigence over refuse collection strikes in Birmingham, but whatever her politics, she is at least committed to uncovering the truth.
As Ms Graham says, multiple investigations suggest 'rank incompetence … or something else' during Mr McCluskey's reign. It now falls to the SFO to establish what that 'something else' might have been. It should expedite its inquiry as swiftly as possible. Unite pays £1.5 million a year to affiliate to the Labour Party and contributes significant sums to individual Labour MPs. It is too significant a political player to remain under a cloud of suspicion about its past integrity. The facts as they pertain to Mr McCluskey must be established, even if recalling some of them appears to be beyond our Len.
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