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Company with multi-million pound Islington Council contract in midst of fraud scandal

PUBLISHED: 13:21 28 March 2013 | UPDATED: 13:21 28 March 2013

Kier is contracted by Islington Town Hall

Kier is contracted by Islington Town Hall

Archant

A company with a multi-million pound Islington Council contract is embroiled in a fraud investigation.

Kier, which the town hall pays to carry out repairs on all its properties, has suspended a member of staff while it investigates an alleged fraud.

The senior employee is thought to have created a series of fake jobs for Kier to carry out.

While the precise level of activity is not known, it is believed to run into six figures, and could be as much as £1million.

A statement from Kier said: “We confirm that an investigation is under way relating to an employee at our Islington contract but due to its confidential nature, we are not in a position to provide further details.”

Cllr Terry Stacy, leader of Islington’s opposition Lib Dem group, said: “The council needs to come clean and be up front with residents.

“If this kind of fraud has happened how on earth have they been able to get away with it?”

A spokesman for the council said it was an internal matter for Kier to deal with.

In August, the Gazette reported details of a legitimate, profit-sharing “sweetheart” deal between the council and Kier worth more than £12million to the contractor.

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