HS2: Investigation launched into two companies supplying development staff

An investigation has been launched into “whistleblower allegations” in regards to the practices of some “labour suppliers” to the corporate constructing the embattled HS2 rail line.

HS2 Ltd is investigating two corporations that provide staff to construct a part of the London to Birmingham part of the road, which the i Paper, which first reported the story, says pertains to the billing for the employees provided.

The corporate, which is owned by the federal government, says it “treats all whistleblower allegations critically” and launched an investigation earlier this yr, whereas the Division for Transport provides that it’ll guarantee any claims of wrongdoing are “totally investigated”.

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It’s understood the 2 companies underneath investigation have been offering staff to one among HS2’s contractors on the West Midlands part of the road, Balfour Beatty Vinci (BBV), which isn’t accused of wrongdoing.

A spokesperson for HS2 Ltd says BBV has “applied further monitoring and controls”.

It’s understood that one contractor stays suspended from new contracts whereas the probe continues.

An HS2 spokesperson stated: “HS2 Ltd treats all whistleblower allegations critically and we’re conscious of the claims made in relation to labour suppliers on a part of the route.

“An investigation was launched earlier this yr into numerous completely different allegations and our contractor Balfour Beatty VINCI has applied further monitoring and controls.”

A Division for Transport spokesperson added: “The federal government and HS2 Ltd take all whistleblower allegations extraordinarily critically and have a zero-tolerance perspective in direction of fraud, bribery, and corruption. We are going to subsequently guarantee any claims of wrongdoing in HS2’s provide chain are totally investigated.

“Now we have taken motion to grip the supply of HS2, tasking CEO Mark Wild to essentially reset the venture and alter the corporate’s tradition and functionality to ship the road as cheaply as potential.”

It’s understood that there’s at present no police or HMRC involvement.

BBV has been approached for remark.

What’s HS2?

The HS2 rail line was introduced in 2009 to spice up capability and reduce the journey time between London and the north of England.

The preliminary plan was to construct the primary section connecting London and Birmingham, adopted by including two branches to Manchester and Leeds – however the earlier Conservative authorities determined to scrap the second section as a result of spiralling prices and quite a few setbacks, and the brand new Labour administration has stated it is not going to reverse the choice.

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Authorities does not know the way a lot HS2 will price

Sir Keir Starmer’s authorities has pledged to “get a grip” on the rising prices of the venture that, in keeping with a Home of Commons analysis briefing, have been pushed “by excessive inflation, in addition to scope adjustments, worse floor situations than anticipated and optimism bias”.

In 2012, it was estimated that HS2 Section 1 would price £20.5bn (in 2019 costs) to finish – however forecasts have since grown, with the newest estimate in January 2024 estimating it could price £49bn to £56.6bn (in 2019 costs).