The UK’s High Speed Two (HS2) central fraud team is conducting an investigation into whistleblower claims against one of its labour suppliers for reportedly overinflated charges related to the West Midlands section of the high-speed rail line.
The investigation, initiated earlier this year, was first reported by the i Paper and involves allegations of misclassification of self-employed staff as pay-as-you-earn salaried staff, resulting in inflated rates and submission of fake payslips.
The inquiry has been initiated following reports from two different whistleblowers.
HS2 has reportedly suspended Danny Sullivan Group from new contracts pending the investigation’s outcome, although the subcontractor is said to continue to work on three other sections of HS2.
The claims involved the labour supplied to the Balfour Beatty VINCI (BBV) joint venture, the contractor responsible for constructing the West Midlands section of the high-speed railway between Birmingham and London that has faced repeated delays and cost increases.
A spokesperson for Danny Sullivan Group told the media outlet that the company takes the allegations “extremely seriously” and is fully cooperating with the investigation.
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By GlobalDataHS2 has also investigated a second company, which had its suspension lifted after remediation and remains under enhanced monitoring. Both companies supplied workers to BBV, the main contractor for HS2.
The UK’s Department for Transport (DfT) emphasised its commitment to thoroughly investigate any claims of wrongdoing within HS2’s supply chain.
A HS2 spokesperson stated: “We treat all whistleblower allegations seriously and employees are actively encouraged to speak up if they see or hear something that concerns them. We are aware of the claims that have been made, and an investigation is currently underway.
“Additional monitoring and controls have been implemented while the current investigation is underway.”
A DfT spokesperson reiterated the government’s and HS2’s zero-tolerance approach towards fraud, bribery, and corruption.
The HS2 project, announced in 2009, aimed to improve rail links between the north and south of England and boost the economy, but faced increased costs and later led to scaled-back plans, reported The Guardian.
Originally, the project included a second phase with branches to Leeds and Manchester. However, the Leeds leg was dropped in 2021, and the Manchester leg was removed in 2023, with the rail line now set to terminate at Birmingham.
