One of the British’s largest trade unions had a “widespread fraud atmosphere”, concluding an auditors report received by the BBC.

The Unite, which used to be the largest donor of the labor, also faced a “loss” – effectively a financial hit – £ 53.8m, related to the construction of a hotel in Birmingham, has been said in the report.

In a highly important 35-page document, Auditors BDO provided opportunities to cheat in the union in the 2021 financial year “in a weak control environment”.

An inquiry was ordered by Unite General Secretary Sharon Graham soon after being selected in 2021. It was presented by the Auditors to the ruling executive council of the union today.

The BDO report stated that there were “unusual relations” between former senior employees and customers and suppliers of Unite, as well as a culture that failed to ensure “financial transactions” and “proper financial reporting”.

Ms. Graham said: “On behalf of 1.2 million Plus members of Unite, I promised my election that I would highlight the truth about the historical alleged corruption related to the Birmingham Hotel Project.

“This process has been quite clearly an ugly, where I have lost the attacks and smears with which there is a lot to lose, but they have not disturbed me.

“Re-audit is in its final stages and as we move forward to complete, I will make sure that steps have been taken so that it never happens again and we have already started the process of getting back our money.”

BBC First told that serious fraud office An investigation has been launched in the hotel construction project.

South Wales Police and HMRC are investigating historical allegations of fraud, bribe and money laundering related to the Union. Officers In April 2022, the London headquarters of Unite was raided.

Auditors BDO “identified properties, which have been made available to some employees and senior management, which facilitates a financial reverse … with the union taking uneven risk”. It is not clear which employees benefited.

The report stated that the members of the Executive Council of the Union “need to” provide details of all business interests “and other relationships mean united” it is unable to determine that interests have been confronted “.

Sharon Graham has committed to tighten the governance processes, including those involved in expenses, gifts and hospitality.