The Real Unite

So here it comes. For months now, EC members linked to the UL faction have been squirming as the investigations into alleged corruption conclude. Knowing what’s coming, they’ve been blowing smoke.

They’ve wasted hundreds of thousands of members’ money on bogus court cases. They’ve pushed one wild allegation after another against the general secretary. Even stooping to briefing the Murdoch press against strikes. And including trying to blame her for delaying the union’s accounts, because, er, she ordered a full investigation into the accounts.

On Friday, the union’s auditors BDO presented their Re-audit of the 2021 books to the EC. Apparently most of the “UL supporters club” did bother to turn up this time, rather than sitting it out in the pub while claiming a full week’s expenses, so they can’t say they didn’t hear it.

And here’s what they heard. The auditors explained that the 2021 accounts will be submitted in the next few weeks. They explained that the accounts have been delayed because they have been conducting a detailed investigation into the many irregularities. And they went through a 38 page presentation on what they’ve found.

So after months of allegations, and years of attacks and smears, the faction can’t stop the facts from coming out. And the facts fully vindicate the general secretary and her promise to clean up our union.

It doesn’t make pretty reading.

The auditors confirmed that there is a £53.8 million impairment on the assets of the Birmingham Hotel scheme. That is: the development is worth £53.8 million less than was originally claimed (under Len McCluskey and acting finance director Howard Beckett).

(Note: the keen-eyed may note that this is £2 million less than the £56 million we reported a few months ago. But it’s still a hell of a lot of members’ money gone missing! )

And the audit report also looked at how this happened. Here are some of their findings.

There were “Unusual relationships between former members of senior management and customers and suppliers” .

There were “Substantial concerns relating to the honesty and integrity of two former members of senior management throughout the year subject to audit and an inherent ability for them to override controls.”

Indeed: “Former members of senior management appear to have been motivated to commit fraud, and their dominant personalities and a weak control environment facilitated opportunities to commit fraud.” 

But it wasn’t just a couple of senior managers. They were able to do what they did because of: “A culture throughout the organisation that did not challenge the appropriateness of transactions and failed to ensure appropriate financial reporting tools were available to support effective governance of the Union.” 

Altogether, the “position of influence” of these senior individuals, plus “inadequate controls throughout the year”, resulted in “a pervasive fraud environment.”

The auditors report was initially just for the EC. The accounts will now be submitted to the Certification Officer, and then be published for all to see.

And so we take the first step towards getting this all out in the open. And it’s just the first step. Next up, the results of the independent inquiries into alleged corruption.

But now the “UL supporters club” on the EC have heard, clear and plain, the auditors saying what we’ve all known for some time. The old regime was rotten to the core.

Will they continue to blow smoke and cover up for their mates? Keep launching attacks on the ones trying to clean up this mess? Or just maybe will a few of them reconsider their position before it all goes public?

Well, don’t hold your breath, but you never know …