The claims relate to the West Midlands section of the high-speed railway project between Birmingham and London which has been hit by repeated delays and cost increases.
An internal investigation has been launched, overseen by HS2 Ltd’s central fraud team, and the firm has been suspended from working on the West Midlands section of the project pending the outcome. It has been permitted to continue working on the other three sections of HS2. The company has denied any wrongdoing.
The new investigation will increase further pressure on the Government over the project, which has been dogged by consistent allegations of fraud.
However, the tax probe threatens to give critics fresh ammunition for claims Labour is failing to take control. Nigel Farage’s Reform party has said it would cancel the “bloated” HS2, saving the taxpayer £25bn.
The investigation has been sparked by two separate whistle-blowers.
Rishi Sunak axed HS2 north of Birmingham
Danny Sullivan Group, a business which supplies labour to HS2, has been suspended from involvement in the BBV section of the project pending further investigation.
On 11 April, a HS2 employee sent an anonymous email to HS2’s chief executive Mark Wild and the entire HS2 board concerning Danny Sullivan Group.
The CIS allows contractors to deduct payments from subcontractors to count towards their tax and national insurance contributions.
The whistle-blower email claims that when questioned, staff at Danny Sullivan Group “submitted fake PAYE payslips in an attempt to mislead auditors”.
Last week, a second whistle-blower also shared their concerns about the alleged PAYE fraud in an anonymous letter sent to The i Paper as well as HS2 Ltd.
Although the current allegations relate only to the BBV joint venture, all the other sections of HS2 have also been alerted and are carrying out audits.
HS2 workers at the Birmingham section of the project (Photo: Ryan Jenkinson/Getty)A second business was also investigated in January and subjected to “monitoring” but has since been reinstated.
‘They try and butter you up’ – former HS2 manager
He told The i Paper he was hauled into a HR meeting in February after the company received an anonymous complaint that he was accepting tickets to football matches from clients, including labour suppliers, without declaring it.
A whistle-blower claims Gill was accused of accepting bribes in return for facilitating “extra labour allowance” on HS2.
“That’s nothing to do with me [the alleged tax fraud] but that’s what they’ve been doing,” he said.
“All the agencies all over the country [ask] ‘oh do you want some tickets for Man United?’ and they try and butter you up with it.
“Now I’m stuck at home out of work.”
A HS2 spokesperson said: “We treat all whistle-blower allegations seriously and employees are actively encouraged to speak up if they see or hear something that concerns them.
“Additional monitoring and controls have been implemented while the current investigation is under way.”
HS2 CEO Mark Wild, right, and rail minister Lord Hendy visit the site at Old Oak Common in west London, from where a tunnel will link the high-speed route to Euston (Photo: Jonathan Brady/PA)“As a business with a long and reputable history we take these allegations extremely seriously and are co-operating fully with the ongoing investigation.
The existence of an investigation does not mean that any wrongdoing has necessarily occurred.
The second firm which was investigated earlier this year denies any wrongdoing and says it has not been suspended from HS2, nor notified that it is under investigation.
Only one third of HS2 ‘civils’ phase complete
Whistle-blowers told The Sunday Times that parliament was not made aware of the true costs of the high-speed line when it voted on laws that approved the construction.
More than £32bn has been spent on HS2 to date but only 15 of 310 structures – including bridges, viaducts, cuttings and embankments – needed for phase one are complete, according to the latest figures supplied by the project.
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He is currently carrying out a full assessment of HS2, including costs and a new estimated completion date, and is due to report back to the Government later this year.
A spokesperson for the Department for Transport said: “The Government and HS2 ltd take all whistle-blower allegations extremely seriously and have a zero-tolerance attitude towards fraud, bribery, and corruption.
“We have taken action to grip the delivery of HS2, tasking CEO Mark Wild to fundamentally reset the project and change the company’s culture and capability to deliver the line as cost effectively as possible.
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