A Unite employee is the subject of a criminal investigation into allegations of bribery, fraud, money-laundering and tax evasion, South Wales police have confirmed.
The police said they were working with HM Revenue and Customs, the tax department, on an investigation into the union employee, as well as several companies.
It comes after 20 officers from South Wales police raided the office of a Unite employee in London in April and took away material as part of their inquiries.
In a statement, South Wales police said it was suspected that contracts for services were “awarded on behalf of Unite to companies controlled by other linked persons, in return for personal financial and other rewards”.
“We understand that the employee under investigation is no longer in a position to make any decisions relating to contracts with external providers on behalf of Unite,” the police said.
The force said the scope of the investigation was limited to the single employee of Unite. South Wales would not comment on whether there had been any arrests, but the Unite employee is not believed to have been arrested.
It is understood the contracts concerned were of about seven years in duration and involved many thousands of pounds a month.
In November, Unite, one of Labour’s biggest donors, cut ties with the supplier and opened an independent inquiry over concerns about financial irregularities.
An assistant general secretary of the union told employees it was suspending ties with the company “primarily due to the risk of committing an offence under the Proceeds of Crime Act 2002”.
A spokesperson for the company involved confirmed in November that it had “assisted the police with certain investigations” but said it categorically denied any wrongdoing, adding: “No charges of any nature have been brought against any person in any way associated or connected with our company.” The Guardian is not naming the company for legal reasons.
South Wales police said: “Due to the seriousness and level of complexity involved in this type of investigation, a dedicated team of specialist officers from South Wales police and HMRC has been setup in order to specifically investigate the suspected offences.”
Unite is cooperating fully and has been served with an order requiring the union to produce material relevant to the investigation.
The police said its investigation was still in its early stages. Unite has been approached for comment.
