New documents show that the company has shifted from a reactive attitude to one of a “proactive investigation”
In the last few months, the HS2 fraud action team has doubled.
Questions were also raised regarding the resources that the Counter Fraud and Investigations team had access to, and so extra resources have been allocated to the team.
HS2 has been under scrutiny for fraud issues
It was reported in June last year that HS2 Ltd reported one of their subcontractors, supplying workers to Balfour Beatty Vinci, and the case was raised in Parliament.
Prior to this, the Danny Sullivan Group was suspended from creating new contracts while they were under investigation in an inquiry, and the contracts with HS2 were subsequently ended.
Regarding the recent increase in allocated resources to the HS2 fraud action team, the minutes say:
- We continue to promote our Speak Out whistleblowing policy to encourage employees, contractors and the public to report any suspicion or allegations of fraud and malpractice.
- We have improved access to supply chain data to increase transparency and deter fraud.
- We use proactive investigations to demonstrate our ability to combat and prevent fraud.
- We are using new technologies to improve efficiencies and detect fraud, error, trends and anomalies.
- We are refining our fraud indicators and algorithms, including the use of AI, to make further improvements.
They also state that, over the course of 2024/2025, the team prevented fraudulent loss of £4,540,335.86, as well as detected £5,181,566.32 and recovered £2,417,291.90.
The full meeting notes can be found here.
Fraud continues to affect major construction projects
Earlier this year, four people were arrested by the Serious Fraud Office (SFO) on suspicion of conspiracy to defraud as a result of an investigation into companies involved in the Energy Company Obligation 4 (ECO4) projects and the unacceptable works that resulted.
The arrests were made following raids carried on three firms and involved projects valued at £44m between 2022 and 2024.
Solicitor general Ellie Reeves KC MP said: “This scheme was meant to tackle fuel poverty and improve people’s homes. Instead, the Serious Fraud Office is investigating claims that £44m in public money was paid to companies that allegedly did little more than submit false invoices for work they failed to carry out.
“I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve.”
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