Contractor suspends three employees as it investigates allegations of 鈥榠mproper conduct鈥� on National Grid job

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Balfour Beatty is investigating 鈥渁llegations of improper conduct鈥� on a 拢500m National Grid gas mains replacement contract in the West Midlands.

The contractor said last week its investigation had been ongoing for the 鈥減ast few months鈥�, with three Balfour Beatty 鈥渕iddle-managers鈥� suspended.

The investigation concerns a 拢500m contract for the National Grid to replace aging gas pipes 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�.

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

Balfour Beatty added: 鈥淭here has been no suggestion or evidence of bribery, corruption or any other impropriety in the award of the contract to Balfour Beatty.鈥�

In a statement, workers union the GMB said it understood the investigation was into 鈥渁llegations of wads of cash changing hands, holidays being paid for and work carried out on individuals鈥� houses in exchange for work on the contract鈥�.

Gary Smith, national secretary at the GMB, said he understood the allegations included 鈥渂ullying, mis-reporting, fraud and corruption鈥�.

He added: 鈥淲e understand that gas mains replacement work, running into tens of millions of pounds in value, may have been tainted by allegations of corrupt practice.鈥�

The GMB said it had 鈥渃onsistently warned鈥� National Grid that the gas mains replacement contracts were 鈥渙pen to - and have been riddled with - abuse鈥�.

Both Balfour Beatty and National Grid declined to comment on the detail of the allegations.

A spokesperson for National Grid said it 鈥渞equires the highest standard of ethical conduct from all those working on our behalf鈥�.

She added: 鈥淲e are aware that our contractor Balfour Beatty is investigating allegations of improper conduct associated with the contract for our gas mains replacement activity in the West Midlands, and that they have suspended three of their employees while the investigation is ongoing. 

鈥淲e are keeping in close touch with Balfour Beatty on their investigation, but it would not be appropriate to comment further until the investigation is concluded.鈥�

Balfour Beatty鈥檚 statement:

鈥淏alfour Beatty works extremely closely with National Grid to ensure the highest standards of ethical behaviour are upheld. For the past few months Balfour Beatty has been leading an investigation into allegations of improper conduct on our West Midlands gas mains replacement contract, one of two gas mains replacement contracts we have with National Grid.

There has been no suggestion or evidence of bribery, corruption or any other impropriety in the award of the contract to Balfour Beatty in April 2013.

Following the award of this contract, Balfour Beatty and National Grid put in place controls to prevent inaccurate reporting of work done under the contract. We have found these controls to have been effective and there has been no inaccurate reporting to National Grid or the regulator.

This investigation is focused on localised behaviour by a small group of individuals working for Balfour Beatty involved with subcontracting in the West Midlands contract.

Balfour Beatty has suspended three middle-managers working on the GDSP contract in the West Midlands, while this investigation is on-going.

We cannot comment further while this investigation continues.鈥�

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