A housing campaigner has uncovered the identity of a sub-contractor accused of overcharging Brighton and Hove City Council by a six-figure sum.
Steve Parry revealed that MA Construction (Brighton), a Portslade company, was responsible for embroiling housing maintenance and repairs contractor Mears in a half-a-million-pound dispute with the council.
Mr Parry identified MA Construction, builders and plasterers, after a two-and-a-half-year freedom of information battle with the council.
Mears is understood to have paid the council at least £513,000 to resolve the dispute which came to light as the result of contract compliance work and an internal audit.
Councillors were told that the company had been barred from working for the council and that Mears would try to recover as much of the overcharged money as it could from the sub-contractor.
There have been concerns that keeping MA Construction’s name secret has cast suspicion on contractors and sub-contractors who were unconnected with the overcharging.
Mr Parry described the catalogue of overcharged work as a fraud although a second dispute – over the cost of electrical work on behalf of the council by Mears – has highlighted issues around how jobs are appropriately costed.
The second dispute, still not finally resolved, is believed to involve a sum in excess of £300,000.
The two cases follow a fraud investigation by Sussex Police into a separate £18 million temporary and emergency housing contract, unrelated to Mears.
Referring to the row over overcharging for plastering, Mr Parry said: “Since 2015 I have been attempting to obtain details of how this fraud took place, who was responsible (or at least took the blame) and the true amount of ‘overcharging’ by the contractors involved.
“The (council’s) head of internal audit said on (Friday) 18 November 2016 that details will not be released and even refused to provide information on the sums involved.
“I now find that this may have been because a deal was done with Mears Ltd to guess at the figures involved.
“The sub-contractor involved can now be named despite strenuous attempts by Mears and Brighton and Hove City Council to keep the company and the details of the fraud confidential.
“ He said that the company was MA Construction (Brighton) Ltd, which was incorporated in November 2010.”
I have just been billed for my half share of a roof for a small flat being £8,804,75
Making the roof over both flats nearly £18,000.00. My friend just had a new roof over her Victorian house costing £8,000. If it was in two flats the cost would be £4,000 per flat. Mears have charged me 18%
Uplift which is nearly £3,000 and BHCC 4% Uplift of £688.00. I thought my bill for half the roof would be 5k max. I am a pensioner and its making me sick with worry.