The company building the HS2 rail line between London and Birmingham has reported one of its subcontractors to the tax authorities over possible fraud. Whistleblowers made allegations over the way pay was handled for some construction staff on the high-speed line. HS2 Ltd said last month it was conducting its own investigation, looking into two firms who supplied it with workers. The company has now also referred the matter to HMRC. The firms in question were providing workers to Balfour Beatty Vinci (BBV), a contractor for HS2. Transport Secretary Heidi Alexander is expected to raise the issue in Parliament this week. It is the latest difficulty to beset the troubled giant rail infrastructure project. HS2 has faced myriad challenges and spiralling costs since it was first announced in 2009. It was originally designed to boost capacity on the railways between the north and south of England but the last, Conservative, government decided to scrap the second phase of the project, which included building lines to Manchester and Leeds. Earlier this year whistleblowers flagged concerns over the way some subcontracted staff were being paid. They said self-employed workers had been falsely declared as salaried staff, with "fake" payslips submitted at a higher payrate. The allegations werefirst published in the i newspaperin May. One of the labour suppliers is understood to remain suspended from new contracts while inquiries continue. An HS2 spokesperson said: "We treat all whistleblower allegations seriously and are continuing to conduct our own investigation." The firm said it encouraged anyone with relevant information to report it via confidential internal channels. The Department for Transport said last month it had "a zero-tolerance attitude towards fraud, bribery, and corruption" and would ensure any claims of wrongdoing were thoroughly investigated.
HS2 reports subcontractor over alleged fraud
TruthLens AI Suggested Headline:
"HS2 Ltd Reports Subcontractor to HMRC Over Alleged Fraudulent Employment Practices"
Bbc News
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TruthLens AI Summary
The construction company responsible for the HS2 rail link connecting London and Birmingham has reported one of its subcontractors to tax authorities due to allegations of fraud related to employee compensation practices. Whistleblowers raised concerns regarding the payment methods for some construction staff, suggesting that self-employed workers were misclassified as salaried employees, with counterfeit payslips issued at inflated rates. This situation has prompted HS2 Ltd to conduct an internal investigation into two subcontracting firms that provided labor to Balfour Beatty Vinci (BBV), a primary contractor for the HS2 project. The matter has subsequently been referred to HM Revenue and Customs (HMRC) for further scrutiny. Transport Secretary Heidi Alexander is anticipated to address this issue in Parliament soon, reflecting the ongoing scrutiny surrounding the HS2 project, which has been plagued by numerous challenges since its inception in 2009.
The HS2 project, initially intended to enhance rail capacity between northern and southern England, has faced escalating costs and complications over the years. Following a decision by the last Conservative government to abandon the second phase of the project, which included routes to Manchester and Leeds, the focus has shifted back to the operational integrity of the existing contracts. The allegations of fraudulent practices initially surfaced earlier this year, with specific claims published in the i newspaper in May. One of the labor suppliers involved in the allegations remains suspended from new contracts pending the outcome of ongoing investigations. HS2 Ltd has stated that it takes whistleblower allegations seriously and encourages anyone with pertinent information to report it through secure internal channels. The Department for Transport has reiterated its commitment to a zero-tolerance stance on fraud, bribery, and corruption, assuring that all claims of misconduct will be thoroughly examined to maintain the integrity of the project.
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