HS2 reports subcontractor to HMRC after alleged fraud

Independent

13 hours ago

HS2 has reported a sub-contractor working on the rail line to HMRC following an internal probe into alleged fraud.
Last month a whistleblower threw a spotlight on two firms providing construction staff to a section of the high-speed line.
It was alleged that an HS2 sub-contractor had been falsely declaring self-employed workers as Paye (pay as you earn) salaried staff and charging an inflated rate for them, then submitting 'fake' payslips, according to reports first published in the i newspaper last month.
A sub-contractor was suspended from HS2's contractor Balfour Beatty Vinci's (BBV) section of the line in the West Midlands, the newspaper added.
One firm has been reported to HM Revenue and Customs (HMRC) for alleged supply chain fraud, a senior Whitehall source confirmed.
Transport Secretary Heidi Alexander is set to raise the issue in Parliament next week.
It is part of Labour's 'wider work to reset and deliver the project after mismanagement under previous governments', the source said.
The entire high-speed railway project is undergoing a reset led by Mark Wild, who became HS2 Ltd chief executive in December amid rising costs and delays.
The source said Mr Wild is 'looking under the bonnet and is not liking what he is finding' and added that Ms Alexander would highlight 'ministerial mismanagement', a 'lack of ministerial oversight' and an organisation that is 'not fit for purpose'.
An HS2 spokesperson said on Saturday: 'We treat all whistleblower allegations seriously and are continuing to conduct our own investigation.
'Furthermore, HS2 Ltd has formally reported the allegations to HMRC, and we encourage anyone who believes they may have relevant information, which could support our inquiries, to report it in confidence via HS2's Speak Out channels.'
HMRC said it cannot confirm if it is investigating.
After reports emerged about the internal HS2 investigation in May, a Department for Transport spokesman said: 'The Government and HS2 Ltd take all whistleblower allegations extremely seriously and have a zero-tolerance attitude towards fraud, bribery, and corruption.
'We will therefore ensure any claims of wrongdoing in HS2's supply chain are thoroughly investigated.'
At that time an HS2 spokesman confirmed it is a 'aware of the claims made in relation to labour suppliers on part of the route.
'An investigation was launched earlier this year into a number of different allegations and our contractor Balfour Beatty Vinci (BBV) has implemented additional monitoring and controls,' it said.
The whistleblower claims were first made in February, the i reported.
About 31,000 people are now employed on the programme across the 140-mile route.
In May a giant HS2 boring machine broke through to complete the first section of a 3.5-mile tunnel on the route's approach into Birmingham.
The tunnel is the first of two bores of the Bromford Tunnel, running from the village of Water Orton in North Warwickshire to the Birmingham suburb of Washwood Heath, and passing under the area's motorway network and the River Tame.
The tunnel breakthrough, HS2's first in Birmingham, was described as a significant milestone for the line, which will almost halve journey times between Birmingham and London, while freeing up track space on the West Coast Main Line for local, regional and freight services.