The Serious Fraud Office (SFO) has commenced an investigation into the £112 million Eastside Rooms project, developed by trade union Unite in Birmingham.
- The development, featuring a hotel and conference centre, was completed in 2021 but has faced scrutiny over its costs and current valuation.
- Unite’s general secretary, Sharon Graham, initiated an inquiry following discrepancies between the project’s cost and its subsequent valuation.
- South Wales Police are also conducting a separate investigation into associated allegations of bribery, money-laundering, and fraud.
- The findings from these inquiries have been handed over to government investigators for further examination.
The Serious Fraud Office (SFO) is currently scrutinising the construction of the Eastside Rooms, a hotel and conference centre in Birmingham, following allegations of financial mismanagement. Completed in 2021 at a cost of £112 million from Unite members’ funds, the project’s valuation now stands markedly lower at £29 million, prompting concerns and inquiries.
In 2021, as Sharon Graham took on the role of general secretary for Unite, she quickly commissioned a KC-led inquiry. The investigation was driven by revelations of the project’s stark depreciation in value, which raised serious questions about the management of funds and potential misconduct.
In addition to the ongoing SFO investigation, South Wales Police have been exploring related allegations. Their search of the union’s London headquarters in 2022 forms part of a broader probe into claims of bribery, money-laundering, and fraud linked to the union’s financial management and affiliated services.
Unite has expressed its full cooperation with the investigations, emphasising the commitment of its general secretary, Sharon Graham, to ‘leave no stone unturned’ in probing past misconduct. The union is also pursuing legal avenues to recover any financial losses incurred.
While the SFO maintains its practice of neither confirming nor denying the existence of an investigation, the handover of findings from the KC-led inquiry signifies a crucial step in the pursuit of justice. Unite has pledged not only to unveil any wrongdoing but also to implement safeguards preventing future occurrences.
The investigations into the Eastside Rooms project underscore a rigorous pursuit of accountability and justice within trade union financial practices.
