The Construction Index broke the news on 15th May tha two subcontractor labour suppliers on HS2 were being investigated after evidence was found indicating that a senior works manager had accepted bribes from a supplier in return for extra work on the project.
It was also alleged by an anonymous whistleblower that another subcontractor has been supplying self-employed CIS workers while charging an inflated PAYE rate and using fraudulent offshore payroll companies to process these bogus payments.
As we reported at the time, the whistleblower described the shenanigans as “fraud on a large scale which the public have a right to be informed of”.
After we broke this news, HS2 Ltd responded: “HS2 Ltd treats all whisteblower allegations seriously. We are aware of the claims that have been made, and an investigation is currently under way.”
The two labour companies mentioned in the whistleblower’s letters and the main contractor whose employees is accused of accepting bribes, denied all knowledge any allegations.
However, on 25th May, 10 days after we broke the story, The i Paper reported that Danny Sullivan Group, one of the labour suppliers named in the whistleblower’s letter, had been suspended for working on Balfour Beatty Vinci’s West Midlands section of the project.
When we approached BBV and Danny Sullivan Group two weeks ago, they both pled ignorance to the allegations.
However a spokesperson for Danny Sullivan Group has now told The i Paper: “We are aware of the allegations that have been raised in relation to HS2. As a business with a long and reputable history we take these allegations extremely seriously and are co-operating fully with the ongoing investigation. We have acted swiftly to respond to the information, commissioning a detailed and thorough internal review, which remains ongoing.”
The second labour supplier mentioned by the whistleblower was investigated in January, according to this week’s reports, but has since been reinstated.
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