Saturday, 4 October 2014

BALFOUR BEATTY PLC - FINANCIAL IRREGULARITIES

It's probably an apt time to highlight that my initial attempted protected disclosure back in 2005 was not about the Blacklisting. It was about financial irregularities in Balfour Beatty's mechanical and electrical (M&E) services business. Building Magazine are currently reporting that £30 million of Balfour Beatty's current profit warning is associated to the M&E business.

It concerned the overbooking of bonus targets by supervisors and chargehands (who were included in the bonus scheme they administered) to enhance the bonus payments to themselves and site operatives on major projects. 

This practice has a significant detrimental effect on a projects' profitability, as the company still has to pay the operatives again at their hourly rate to complete the work previously booked via the bonus sheets as 100% complete. In effect, the company are paying twice for the labour costs to complete these overbooked sections.

I was not alone in raising these concerns. The following is a letter dated 1 June 2005 from a site supervisor (Nick Batt) at the Coventry Arena project to the Managing Director, David Beck. In this he describes the process of how the previous supervision had moved on to other employment after creaming off all the bonus. 

The letter also highlights that Nick raised these concerns with a number of senior managers, including me. I was isolated, forced out of the business and signed off work sick by my doctor with work related stress at the time and only learned of the existence of this letter well over a year later when it was produced during disclosure for my Employment Tribunal in November 2006.

NICK BATT LETTER (pg1)

NICK BATT LETTER (pg2) 

NICK BATT LETTER (pg3) 

My concerns about these financial irregularities and the company's blacklisting procedures are all detailed in the following post:

BALFOUR BEATTY & THE BLACKLISTING
 


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