Len McCluskey, previous head of Unite, accepted benefits from the Flanagan Group, which overcharged the union by over 30m for a hotel project. An internal report revealed McCluskey neglected staff and legal advice to approve the contract with Flanagan. The project exceeded costs significantly, with Unite spending 72m more than the hotel's value. The Serious Fraud Office has launched an inquiry, while Sharon Graham, McCluskey's successor, has commissioned an investigation into the hotel’s finances. McCluskey maintains he paid for his own travel and tickets during this period.
The Flanagan Group overcharged Unite by at least 30m for the Birmingham hotel and conference centre project while McCluskey accepted flights and tickets.
McCluskey overruled staff and union lawyers in signing the construction contract with the Flanagan Group, leading to spiraling costs and inquiries.
Unite spent at least 72m more than the hotel complex was worth, and awarded the contract to Flanagan without competitive tendering despite past concerns.
Carter-Ruck stated McCluskey paid for his own travel and tickets, denying he overruled advice from staff or lawyers over contract decisions.
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