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Hot off the press!
Just over a week ago – news spread in the construction industry of Balfour Beatty paying out a six figure sum to a whistleblower who accused the company of under-estimating potential profits.
Nigel McArthur, from Devon, worked as a Regional Pre-Construction Manager for the company. He had worked for the company for almost 10 years and had 40 years experience in the construction industry.
Balfour Beatty tendered for an £18.5m office building project in Cardiff which would be paid out of public funds by the Welsh government.
Nigel disclosed that the true costs of the subcontractors work had been hidden to increase its profit margins from an agreed 3.3% to 7.34%, overcharging the government.
When he shared his findings with his line manager, he was told “he should not have investigated the costs or should not be concerned about it.”
Nigel raised concerns internally through the Company’s whistleblowing procedures but was bullied as a result of his disclosure, until he resigned in February 2015 and commenced a claim for constructive dismissal.
Shortly before the case was due to heard at Employment Tribunal. Balfour Beatty admitted liability and the case was settled.