Unite has released today key findings from five 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,” has been delivered as part of the sweeping changes made at Unite under General Secretary Sharon Graham 

Within weeks of her election as general secretary in 2021, Sharon Graham began to deliver on the promise that she made to Unite members: to do everything in her power to investigate allegations of wrongdoing by the previous leadership of Unite. Today’s report is a major milestone in that journey.

The process started in 2021, when Sharon Graham commissioned an independent valuation of the Birmingham Hotel Development, built under previous general secretary Len McCluskey. The union paid at least £110 million for the project, but the valuation showed that the project was only worth £37.5 million.

Sharon Graham then commissioned an independent King’s Counsel led inquiry into the Birmingham cost overruns. This found massive overcharging and numerous irregularities. 

A further report was commissioned into potential criminality.

In April 2022, South Wales Police raided the Unite offices of a (now former) senior official in an investigation into “criminal offences of bribery, fraud, money-laundering and tax evasion” linked to his management of the union’s affiliated services contracts. This prompted  further independent investigations by the union.

The interim report issued today is redacted due to ongoing police inquiries. 

Please see the main findings attached.

In her letter to elected representatives of Unite, general secretary Sharon Graham commented:

“When I was elected, I pledged to uncover the truth about allegations of historical corruption, particularly in relation to the Birmingham Hotel and Conference Centre. Today I have delivered on that promise. Getting to the truth has been ugly, with those with much to lose and different agendas using abhorrent tactics, in order to frustrate and divert the process. These tactics did not work. 

“Regardless of where the ongoing police inquiries lead, the independent investigations are clear: money left our union when it should not have. And other money that should have come into the union did not. I make our members this promise: I will do everything in my power to get our money back.

“Creating transparency through the publication of this report is only the start. We need to ensure that this can never happen again. Looking to the future, Unite is in a very strong financial position. Our substantial resource going forward will be focused on the frontline, the workplace, strike pay, opening offices, and defending workers.”

Notes to editors

Project Clean Up: investigations and next steps

The Project Clean Up report issued today includes key findings from five independent investigations and a re-audit of 2021


•    Martin Bowdery KC, Independent Inquiry into the Birmingham Development
•    Independent criminal law report, Surrounding potential issues of criminality arising from the Bowdery report
•    Grant Thornton, Report in respect of the Birmingham Development
•    Grant Thornton, Report in respect of Affiliated Service Providers
•    Bark & Co.: Report into governance failings in Unite related to Birmingham and Affiliated Services
•    BDO presentation on their re-audit of 2021 accounts.
In addition and because of the report findings, the following measures have already been undertaken as part of Project Clean Up:
•    The senior employee under investigation by the police has been through disciplinary action and left the union. 
•    The union has cancelled  contracts with connected suppliers. This has restored several million pounds. 
•    The union has professionalised finance operations to ensure a capable, ethical,  team is overseeing the use of member resources. It has hired qualified finance professionals, including a new finance director and for the first time, a procurement manager. 
•    A complete re-audit of the 2021 accounts was commissioned.
•    A new gifts and hospitality policy has been introduced.
•    22 new accounting measures are being introduced. 
•    The entire governance of the Union is being reviewed under a Democracy Commission.
•    Work ongoing to recover members' money. 

Unite is in a very healthy financial position with liquid assets of over £160 million and a balance sheet of around £400 million.

Today, Unite is also announcing the establishment of a Unite Democracy Commission, which will carry out a fundamental reform of the union’s governance. This will introduce new checks and balances involving the union’s 25,000 shop stewards.

The full report can be found on the Unite website: https://tinyurl.com/bdhm43aw
A full video statement from general secretary Sharon Graham can be viewed: here