Balfour Beatty began investigating its labour suppliers in May after a whistleblower alleged fraud.
Danny Sullivan supplies personnel to several Balfour Beatty projects, most notably HS2, where Balfour Beatty works in joint venture with Vinci.
Balfour Beatty issued this statement on 4th July:
鈥淒uring an audit of our UK labour suppliers, concerns related to the Danny Sullivan Group were identified. While these concerns were being reviewed, related issues were reported through our confidential whistleblowing channel in regard to our HS2 project. An independent investigation, which has now concluded, found that Danny Sullivan Group had misinformed us about the provision of Construction Industry Scheme (CIS) workers instead of PAYE employees, in breach of their agreements.
鈥淲e are facilitating the smooth transfer of Danny Sullivan Group employees to alternative approved labour suppliers or direct to Balfour Beatty to ensure operational continuity and continuous employment for the workforce. Balfour Beatty is committed to the highest standards of ethical conduct. Enhanced controls and governance measures have been implemented to mitigate the risk of future compliance issues.鈥�
In response Danny Sullivan said: 鈥淎fter extensive discussions on our commercial arrangements and contractual terms, Danny Sullivan & Sons will cease its provision of skilled trades and labour to Balfour Beatty.
鈥淭his decision follows the completion of a review, commissioned by Danny Sullivan & Sons, into the erroneous engagement of a number of Construction Industry Scheme (CIS) workforce operatives. Throughout this review process, no evidence of deliberate wrongdoing involving any employees of our business was identified.
鈥淚ndividuals affected by this decision will continue to work with Balfour Beatty and we are working to mitigate the impact with minimal interruption.
鈥淥ur externally-led review was carried out in conjunction with significant investment in enhancements and transformation to the company鈥檚 processes, technology and culture 鈥� supporting our ongoing and future partnerships with long-standing clients who trust us to deliver projects at the heart UK infrastructure. Our work continues across UK infrastructure projects and we are proud to be operating at a size and scale not seen before in our business with a renewed focus on the highest standards of governance alongside significant operational improvements.鈥�
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