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Balfour Beatty has found evidence of 鈥渂ullying鈥� and the 鈥渇alsification鈥� of records on a 拢500m gas contract in the West Midlands but 鈥渘o evidence of systemic bribery and corruption鈥� following an investigation.

Earlier this month, it emerged that the construction giant was looking into 鈥渁llegations of improper conduct鈥� concerning the award of subcontracts on the National Grid gas pipe replacement contract in the West Midlands.

Balfour Beatty said the investigation was 鈥渇ocused on localised behaviour by a small group of individuals working for Balfour Beatty involved with subcontracting in the West Midlands contract鈥�.

Reporting the findings of its investigation today, the firm said it had found 鈥渘o evidence of systemic bribery and corruption鈥� and 鈥渘othing on the scale that was alleged鈥�. 

However, it added there was some evidence of 鈥渓ocalised bullying鈥�.

The firm also said: 鈥淲e did uncover some evidence to suggest that payments totalling less than 拢1,000 may have been made before Balfour Beatty took over the contract.鈥�

The firm said there was also 鈥渟ome evidence鈥� that 鈥渁 small number of employees may have been involved in falsification of dates as to when work was done on 鈥榯rack sheets鈥欌��.

But it said the falsification led to 鈥渘o financial benefit to Balfour Beatty or to individuals, nor would it have influenced the choice of a subcontractor鈥�.

It said the investigation had concluded 鈥渢hat the processes and controls used by Balfour Beatty and put in place mean it would be extremely difficult for any employee working on the operational side of the business to exert significant, improper influence on the choice of a subcontractor for the contract鈥�.

It added: 鈥淭hese measures involve separation of the commercial and operational aspects of letting subcontracts, so the chance of individuals receiving payments for selection of subcontractors on the scale alleged is extremely unlikely.鈥�

Balfour Beatty said it had launched its investigation following allegations of corruption in an anonymous letter that alleged that individuals were receiving payments in return for giving work to subcontractors.

Balfour Beatty was awarded the contract, which is part of the National Grid鈥檚 Gas Distribution Strategic Partnership (GDSP), in 2012.