HS2 has launched an investigation into whistleblower claims that overinflated rates were charged for workers supplied to build the West Midlands section of the route.
The allegations relate to two labour suppliers employed by the Balfour Beatty Vinci (BBV) joint venture on the London-to-Birmingham high-speed line.
One of the suppliers, London-based Danny Sullivan Group, remains suspended from new contracts while the inquiry is ongoing, HS2 said.
“We are aware of the allegations that have been raised in relation to HS2,” Danny Sullivan Group told Construction News in a statement.
“As a business with a long and reputable history we take these allegations extremely seriously and are cooperating fully with the ongoing investigation. We have acted swiftly to respond to the information, commissioning a detailed and thorough internal review, which remains ongoing.”
A second company, which has not been named, was suspended and investigated in relation to the allegations but the suspension was lifted by BBV following a period of remediation, although the firm remains under enhanced monitoring by BBV.
HS2 said it was aware of the labour-supply claims and confirmed an investigation was underway.
“HS2 Ltd treats all whistleblower allegations seriously and we are aware of the claims made in relation to labour suppliers on part of the route,” a spokesperson said.
“An investigation was launched earlier this year into a number of different allegations, and our contractor Balfour Beatty Vinci has implemented additional monitoring and controls.”
The contract, awarded to BBV in 2017, was one of the jobs deemed “extremely poor value for money” by Parliament’s Public Accounts Committee earlier this year.
The Department for Transport (DfT) said it had already taken action over the delivery of HS2, tasking chief executive Mark Wild to fundamentally reset the project and change the company’s culture and capability to deliver the line as cost effectively as possible.
“The government and HS2 Ltd take all whistleblower allegations extremely seriously and have a zero-tolerance attitude towards fraud, bribery and corruption,” a DfT spokesperson said.
The development comes as the latest figures indicate fewer whistleblowers are coming forward across the construction sector to report suspected malpractice.
The sector has seen a 1.6 per cent decrease in reports globally over the past year, according to a report by whistleblowing solutions provider Safecall.
Now averaging the equivalent of one report for every 330 employees, just over half of accounts relate to HR issues, including bullying, discrimination, modern slavery and unfair treatment, Safecall found.
A further 19 per cent arise over suspicions of dishonest behaviour, while 15 per cent concern health and safety. The remainder relate to issues including data protection and regulatory compliance.
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Kerry Lorimer