A Liverpool building company that played a lead role in a construction project which has been referred to police has defended its role in the scheme.
Unite the Union has passed two reports into their Birmingham headquarters to police after they uncovered what they said were “very serious concerns about potential criminality.” The Flanagan Group, (TFG) a well known Liverpool company, was a lead contracto r on the project.
TFG led the demolition and site clearance operation, and then worked closely with Unite to deliver the scheme, according to information on the company's website. Last year Unite general secretary Sharon Graham said the union's new Aloft hotel and conference centre in Birmingham was now worth less than it cost to build.
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Unite have now said that two reports, commissioned by Ms Graham, have now been passed to police. A spokesperson for TFG said that has said that the company had 'no detailed knowledge' of the reports passed to police.
The spokesperson said that the company worked closely with Unite on complying with standards and costs throughout the scheme. The spokesperson claimed that TFG was still owed money on the scheme. Unite have so far not responded to this claim.
A spokesperson for TFG said to the ECHO: "The Flanagan Group has no detailed knowledge of the content of Unite the Union’s report or any understanding of the internal processes within the organisation and therefore it’s inappropriate to speculate.
“However, The Flanagan Group and more than 60 sub-contractors were commissioned in 2016 to deliver a mixed-use scheme on prime real estate close to Birmingham’s trendy city centre that was completed in September 2020..
"The fully operational scheme includes a hotel – the Aloft Birmingham Eastside Hotel, the 195-bedroomed, four star hotel, including a restaurant, cocktail bar, luxury suites and gym facility – a conference centre – high-specification meeting and events space, with its own kitchens, bars and coffee stations, capable of serving over 1,200 delegates, including one of Europe’s largest Skyfold walls in the main conference hall – and a further grade A office complex accommodating Unite’s West Midland’s team, including an education centre and canteen together fitted out grade A office space for rental (tenants include the PCS union). The complex is served by an underground car park, with EV charging stations and a service road.
“The Unite Birmingham contract was delivered in accordance with Unite the Union’s demanding operating standards and protocols, and subsequently in accordance with Marriot’s exacting brand standards.
"We were contracted by two clients, Unite the Union (24% of the project) and Black Horse HCC Ltd. (76% of the project). The clients also appointed legal advisors, a contract administrator and architect (to produce a design, undertake quantity surveying duties and to commission the design team) and assigned a project specific convenor, now a Unite the Union executive council member, to monitor compliance.
"The Flanagan Group met regularly with the client’s representatives throughout the construction phase and provided details of the updated, forecasted final cost every two weeks throughout the contract period.
"The clients have not as yet settled ‘contract final account’ more than two years after completion but is enjoying the considerable commercial benefits of the completed scheme.
“Aside from this, the scheme is an incredible development and something we are proud to have worked on.”
A spokesperson for Unite said: "The newly elected general secretary of Unite pledged to find out if there was any wrongdoing in the construction and spending related to the Birmingham Hotel and conference centre. True to her word, after her election,
"Sharon Graham, commissioned an independent QC (now KC) inquiry into the Birmingham development and later a separate inquiry and external forensic investigation into Unite's affiliated service providers.
"Due to very serious concerns about potential criminality that have emerged, both these reports are now being shared with the police. The police have requested that Unite does not release the contents of the reports while they are conducting their inquiries. Whilst these are ongoing Unite will not be making any further comment.
"The general secretary is committed to doing all in her power to recoup any monies lost, by all means necessary and holding anyone responsible to account. It is clear this transparency would not have happened without the determination of the general secretary to 'leave no stone unturned' to get to the truth".
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