The construction of a £112m hotel and conference centre in Birmingham is under investigation by the Serious Fraud Office (SFO).
- Unite, the trade union operating the Eastside Rooms, sought an inquiry due to a significant discrepancy in the centre’s valuations.
- The Eastside Rooms, valued at £29m, cost £112m of union members’ funds to build, raising concerns.
- Unite’s General Secretary, Sharon Graham, is determined to investigate any potential financial malpractice.
- The investigation aligns with ongoing police inquiries into related financial misconduct within the union.
The Serious Fraud Office (SFO) has commenced an investigation into the construction of a £112 million hotel and conference centre in Birmingham, known as the Eastside Rooms. This initiative follows concerns raised by the trade union Unite, who developed and currently operate the complex.
Unite commissioned a King’s Counsel-led inquiry after reports emerged highlighting a significant valuation discrepancy. The Eastside Rooms, which encompass a 195-bedroom hotel and multiple event spaces, were found to be valued at merely £29 million despite the substantial £112 million investment sourced from union members.
Sharon Graham, General Secretary of Unite, has publicly stated her commitment to thoroughly examine any possible financial discrepancies or malpractices involved. Her resolve is encapsulated in her promise to ‘leave no stone unturned’ in pursuit of transparency.
In a broader context, this investigation is a part of ongoing scrutiny concerning Union-related financial activities. This includes inquiries conducted by South Wales Police into separate allegations of bribery, money laundering, and fraud.
The SFO, while adhering to longstanding practices intended to safeguard the integrity of law enforcement activities, neither confirms nor denies the specifics of the current investigation. BusinessLive, among other media outlets, has pursued additional comments from the SFO to provide further clarification.
The ongoing investigations highlight the union’s commitment to uncovering any financial irregularities.
