‘I was followed home', says Unite boss as fraud inquiry deepens
Sharon Graham, who took over in 2021 on a pledge to 'leave no stone unturned to get to the truth', said that she had endured 'horrendous personal attacks' as the process got 'ugly'.
On Tuesday, a report about a scandal-hit hotel complex in Birmingham found that the union, which is funded by workers' fees, was overcharged by £30 million.
The main contractor, the Flanagan Group, owned by men whom McCluskey called his 'good friends', paid for the former union boss to fly out to watch the Champions League final two years running, including in a private jet, the report found.
The report said that the union believes that there is evidence to support criminal investigations into two 'very senior' former Unite officials. The case was passed to the Serious Fraud Office last year but no arrests have been made. Unite said that the 'reports are with the police'.
The union's auditors found that there was a 'pervasive fraud environment' at Unite and that 'former members of senior management appear to have been motivated to commit fraud'.
Ten suspects have also been identified in a separate investigation by South Wales police into bribery, money laundering and fraud relating to contracts for affiliated services offered by the union.
Graham, who has struggled to pull the union from the shadow of its past, said that 'to get here has been an extremely difficult process and quite frankly an ugly one'.
'Those with much to lose, and their supporters inside and outside the union, have done all in their power to attack me,' she said in a foreword to the report. 'I have had to endure horrendous personal attacks over three years, both from vested interests and those with blind loyalty to factions.
'I expected turbulence of course, but even I was shocked at the lengths being gone to: despicable online abuse and being followed home.'
She claims that her opponents operated a 'scorched earth strategy that was adopted by some supporters of a faction tied to the past' to 'lie' about Unite.
• Unite leader Sharon Graham defends strategy of targeting bosses' families
The union ultimately paid £112 million for a hotel and conference complex in Birmingham, £74.5 million more than it was worth. On Tuesday, Unite announced that it had wiped £66 million from its accounts as an 'impairment'.
The profit mark-up was double the industry norm and the contracts were signed by McCluskey against the advice of lawyers, the report found.
The Flanagan Group, a Liverpool-based construction firm, later arranged football tickets, hospitality and flights, including at least one private jet flight, for McCluskey, the report said. Two of the matches were the 2018 and 2019 Champions League finals in Kyiv and Madrid, the latter of which he travelled to by private jet.
The owners of the Flanagan Group 'consistently organised and paid for' his tickets, and there is 'no indication' McCluskey reimbursed them. Lawyers for McCluskey have previously told the BBC that he paid for his own travel in full and did not recall attending all of the domestic matches in the Unite report.
• Unite left fearing fraud squad's might
A statement issued to The Times this week by Carter-Ruck, McCluskey's lawyers, said: 'Our client is deeply disappointed by the statements and report published today by Unite, which were issued without any prior reference to him, and he is considering his legal rights in this regard.
'As this matter is understood to remain the subject of ongoing police investigation, it would be inappropriate of McCluskey to comment in detail on it at this time. Suffice to say that such allegations as have been published regarding our client are categorically rejected by him as inaccurate, selective and highly misleading.'
In interviews with a KC leading Unite's investigation, McCluskey denied that he overruled staff or lawyers over the contract, and instead said that he had delegated many key aspects of the project to Ed Sabisky, Unite's former finance director, who died in 2020.
The Times called the Flanagan Group for comment on Tuesday. Their representative declined to answer questions or give an email address.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
4 minutes ago
- The Independent
Teenager, 18, has ‘three-quarters of scalp ripped off' on funfair ride in Hampshire
An 18-year-old woman has been left with potentially life-changing injuries after her hair reportedly became caught in a funfair ride in Hampshire at the weekend. Emergency services were called to Netley Marsh Steam and Craft show shortly before 11pm on Saturday after the teenager's hair was said to have been trapped in the rollers of a swinging floor. Emma Perry, a nurse from Southampton General Hospital, told the Southern Daily Echo: 'Her friend came off the ride and said she was bleeding, so I offered my services as a first aider. 'When I got up there, I saw that three-quarters of the girl's scalp had been ripped off in what we call a degloving incident.' One woman told the BBC that she had helped provide first aid to the teenager, and that there had been 'shock and panic' at the scene. "One of the girl's friends came down and said how serious it was and some of us offered assistance,' she said. "It's very shocking it could happen on a fairground ride that young children go on. This must never happen again.' In a post on Facebook, the show's organisers said: 'The unfortunate incident that happened at the show last evening is being investigated by the relevant authorities. 'Netley Marsh Steam and Craft Show Ltd are cooperating with all parties involved. No further comment will be made until such time as appropriate and more information is available. 'Any comments made at present on social media are NOT the views of the show organisers and we will continue to support all parties involved. A Hampshire Police spokesperson said: 'We were called at 10.53pm on 26 July with reports that an 18-year-old woman had sustained potentially life-changing injuries to her head while on a ride at Netley Marsh Steam and Craft Show. 'She was taken to hospital for treatment. 'Police attended and have liaised with the Health and Safety Executive.'
The Independent
4 minutes ago
- The Independent
Connection times to be cut ‘by more than half' via new security rules for London-US flights
Travellers on connecting flights from London to the US will soon be able to avoid rechecking hold luggage and skip standard airport customs. Starting this month, US Transportation Security Administration (TSA) pilot programme One Stop Security (OSS) plans to streamline terminal security steps to speed up connections for air passengers. Some American Airlines passengers flying from London Heathrow airport with connecting journeys through Dallas Fort Worth International (DFW) will now be able to clear US Customs at the arrival gate. From here, customers can directly board their connecting flight without reclaiming and rechecking hold luggage or clearing TSA security. Typically, travellers must clear customs, claim checked bags, recheck bags and then again go through security. With OSS, checked bags are automatically transferred to the connecting flight. The pilot system is a partnership of the TSA, US Customs and Border Protection (CBP) and the UK Department for Transport (DfT). According to American Airlines, the new process is expected to cut airport connection times by 'more than half'. American is the first US airline to pilot the scheme on select routes at DFW. Some Delta passengers are also trialling OSS on routes from Heathrow to Hartsfield-Jackson Atlanta International Airport. Travellers with Delta will be processed in a dedicated customs area and will not have to claim and recheck their bags. However, only those who are registered in Global Entry, a 'trusted traveller programme', or have the Mobile Passport Control app, will be able to bypass TSA screening, reported the NY Times. To apply for Global Entry, British passengers are required to apply for a background check by the UK government (£42), then the US government (£90). Upon passing, passengers are subject to an in-person interview. Once completed, Global Entry is valid for five years. The introduction of the security system in the US follows a successful pilot in February for travellers connecting to international destinations from London Heathrow. David Seymour, COO at American Airlines, said: 'One Stop Security is one of the most forward-thinking enhancements we can bring to international travel — and importantly, to our customers — as it delivers a level of convenience and time-savings that's never been available before to customers connecting from international flights. 'Customers will spend significantly less time worrying about an onerous connection process and more time enjoying their travel journey.' TSA deputy administrator Adam Stahl told Fox News Digital that OSS could be expanded to other airports in the next month. He said: 'It really is a common sense security approach for us to streamline security from abroad to the United States.'
The Independent
4 minutes ago
- The Independent
STV warns over profits as advertising market slumps and TV projects delayed
Scottish media firm STV Group has downgraded its sales and profit outlook as 'deteriorating' economic conditions squeeze advertising revenues and push back TV projects. Shares in the London-listed business plunged by about a quarter on Monday morning following the update. STV said it was now expecting full-year revenue and adjusted operating profit to be 'materially below' a consensus of analysts. Revenues are predicted to range between £165 million and £180 million for 2025. The company said it was now targeting £2.5 million worth of cost savings this year – higher than the £1.7 million outlined in March – having launched a significant savings programme last year, including across its broadcast operations. STV blamed worsening conditions in the commissioning and advertising markets in recent months for the profit and sales downgrade. Advertising revenues for the period between July and September is forecast to decline by 8%, lower than previously expected, driven by a sharp 20% drop in July, it told investors. The year-on-year decline is set to be impacted by particularly strong sales this time last year, due to the men's Euro football tournament being broadcast on TV. It follows a 10% fall in advertising revenues over the first half of 2025. A number of businesses, including WPP and S4 Capital, have flagged a worsening advertising market as more challenging economic conditions prompt clients to reign in marketing spending. Furthermore, STV warned the uncertainty was causing significant deterioration in the commissioning market. It said projects within its unscripted labels were being impacted with some in advanced development not getting the green light, and others being delayed into 2026. Nevertheless, it highlighted strong progress within its scripted labels with current projects including for Netflix, Apple, Sky and the BBC. Rufus Radcliffe, STV's chief executive, said: 'The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate. 'STV Studios' delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of H1 (the first half of 2025) and into the second half of the year.' But he said production had finished on 'key titles with international appeal, including high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One'. 'We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business,' Mr Radcliffe added.
