Former Unite boss Len McCluskey took private jet flights and tickets to football finals from a controversial firm that overcharged the union by tens of millions for a hotel it was building for them.
The building firm, Flanagan Group, is run by “good friends” of McCluskey, and overcharged the union by at least £30m for the Birmingham hotel and conference rooms development according to a Unite report.
McCluskey, who led the union for ten years, also ‘overruled’ Unite staff who raised questions about the building firm, as well as the union’s lawyers who advised against the contracts, which he signed.
The report also claims McCluskey accepted private jet flights and football tickets that were "consistently organised and paid for by" the Flanagan Group, and that there is "no indication" the ex-leader later paid them back.
The former leader accepted private jet flights to watch Liverpool FC play the 2018 and 2019 Champions League finals in Kyiv and Madrid, according to the report.
The report also claims he accepted tickets for five more Liverpool games within the UK, at least four of which included matchday hospitality.
His lawyers deny this, telling the BBC that McCluskey paid for his own travel and, to his recollection, paid the cost of his own football tickets. He also denies he overruled staff and lawyers.
The union paid around £125 million for the Birmingham Hotel Project, but the value of the development has since been placed at just £38 million.
McCluskey was an ardent supporter of the project, which was intended as a financial investment that the union’s members could profit from, as well as a venue for its meetings.
But the wildly controversial project has seen the union investigated over fraud, bribery, money laundering and tax evasion, with police raiding their headquarters in London in 2022.
The interim report, commissioned by current leader of Unite Sharon Graham, includes key findings of five separate investigations into historic corruption within the union.
Sharon Graham speaks as Unite publishes interim report into historical corruption
“When I was elected, I pledged to uncover the truth about allegations of historical corruption, particularly in relation to the Birmingham Hotel and Conference Centre,” General Secretary Sharon Graham said.
“Today I have delivered on that promise. Getting to the truth has been ugly, with those with much to lose and different agendas using abhorrent tactics, in order to frustrate and divert the process. These tactics did not work.
“Regardless of where the ongoing police inquiries lead, the independent investigations are clear: money left our union when it should not have. And other money that should have come into the union did not. I make our members this promise: I will do everything in my power to get our money back.
“Creating transparency through the publication of this report is only the start. We need to ensure that this can never happen again. Looking to the future, Unite is in a very strong financial position. Our substantial resource going forward will be focused on the frontline, the workplace, strike pay, opening offices, and defending workers.”
