Fraud culture was ‘pervasive’ at union, auditors say

There was a “pervasive fraud environment” at one of the UK’s largest trade unions, an auditors’ report obtained by the BBC has concluded.

Unite, which used to be Labour’s biggest donor, also faced an “impairment” – effectively a financial hit – of £53.8m related to the building of a hotel in Birmingham, the report said.

In a highly critical 35-page document, auditors BDO said in the 2021 financial year “dominant personalities and a weak control environment facilitated opportunities to commit fraud” at the union.

The probe was ordered by Unite’s general secretary Sharon Graham shortly after she was elected in 2021. It was presented to the union’s ruling executive council by the auditors today.

The BDO report says there were “unusual relationships”…