Infrastructure Fraud? GMB Asks About Current Investigation

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08 May 2014 | Updated 01 January 1970

The GMB states that it has heard reports of an investigation into allegations of cash changing hands, holidays being paid for and work being carried out on individuals’ houses in exchange for work on the Gas Distribution Strategic Partnership contract for the West Midlands.

The GMB is the union for energy workers. It has written to the National Grid asking a series of questions on a major investigation into allegations of bullying, mis-reporting, fraud and corruption.

Balfour Beatty runs the GDSP in the West Midlands and North West in a contract worth about £4 billion over duration of the contract.

Gary Smith, GMB National Secretary, said: “We are receiving information about a major investigation into the GDSP run by Balfour Beatty. I am told that the investigation underway is into allegations of bullying, mis-reporting, fraud and corruption. We understand that gas mains replacement work, running into tens of millions of pounds in value, may have been tainted by allegations of corrupt practice."

In his letter to the National Grid, Smith wrote: 'Whilst we appreciate you may not be able to go into detail at this stage, we do require some clarity on what the extent of the corrupt practice is likely to be? Indicatively, what value of work was carried out following or as a result of alleged back-handers?

'In the recent past, National Grid was fined millions of pounds for mis-reporting of gas mains replacement work in the same area of the country where the current investigation is said to be focused. We were led to believe that your previous investigation into fraud and mis-reporting was supposed to have cleaned things up. I trust you will give us an explanation why you believe 'Project Nelson', your previous inquiry, has apparently not 'cleaned out the stable'?'

The GMB claims that a senior manager from Balfour Beatty and four other senior managers have been sacked or left site.

Smith concluded: "The National Grid will claim this is 'rogue managers'. However the GMB has consistently warned them these contracts have been open to abuse.”

Picture with thanks to GPS PE Pipe Systems

Article written by Brian Shillibeer | Published 08 May 2014

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