Two officials of a mineworkers’ union are to stand down until a police investigation into allegations of fraud are completed, it was announced today.
The Times reported on Tuesday that detectives from South Yorkshire have started inquiries into claims that the Union of Democratic Mineworkers (UDM) has benefited from a £7.5 billion scheme to compensate miners for ill health.
Malcolm Wicks, Energy Minister, said today that he had asked the chief constable of South Yorkshire to press ahead with the investigation “with all speed” and offered his department’s full co-operation.
The union said that its vice president, Mick Stevens, and Clare Walker, the head of Vendside, a claims company set up by the union to handle compensation cases, were to stand down from their positions until the police inquiry was concluded.
Advertisement
Neil Greatrex, the president of the Nottingham section of the UDM, said: “Mick and Clare have today offered to stand down from their positions until the inquiry is over. They felt it was the appropriate thing to do in the circumstances, and I have accepted their offer.
“We trust the inquiry will be thorough yet concluded as swiftly as possible to ensure their prompt return. Mick and Clare continue to receive the union’s full support and we remain confident that the inquiry will find no basis for any allegations of impropriety.”
Mr Wicks told the Commons that the DTI had today written to the union asking for a complete list of claims submitted through the UDM, to make sure that any potential fraud was capped.
“We have invited the UDM to set out what immediate actions they intend to take in respect of the individuals subject to investigation,” said Mr Wicks. The minister said he had also written to the Law Society asking for an urgent report on issues they have been considering surrounding claims of “double charging” by solicitors.
Mr Wicks added: “I regard these as preliminary steps. I am fully prepared to take further actions as necessary. For example, I have certainly not ruled out the option of suspending the operation of the UDM contract while the police inquiries continue.
Advertisement
“I have asked officials and our claim handlers to assess what impact such action might have on the schedule for the payment of claims.”
The minister said he was anxious to avoid doing anything which would compromise the prompt payment of claims to former miners and their families. He told MPs that £2.6 billion had already been paid to former miners, their widows and families, but more than 700,000 claims were being processed in what has become the world’s largest personal injury compensation scheme.
Mr Wicks said the matters which police were investigating had arisen from discussions his department had had with the Law Society, which had led to the discovery of information now referred to the police. Mr Wicks made clear that there was nothing to suggest any fraud against claimants, and said the investigation was focused solely on the costs of handling claims, and not the payment of compensation.
The minister said the scheme, which covers chronic lung disease and vibration white finger, was highly complex and it was not easy to make changes in the administrative arrangements without risking delays to payments.
The UDM said earlier this week it had acted in the best interests of its members in securing tens of millions of pounds in compensation. The union, which broke away from the National Union of Mineworkers during the bitter year-long strike in 1984, said it was confident there had been no wrongdoing and predicted that the investigation would allay fears over the conduct of union officials.
Advertisement
Meanwhile, legal moves were made today to recover millions of pounds in fees paid to solicitors and claims companies. London-based law firm Greene Wood & McLean said they had been instructed by a group of former miners to take legal action against a number of solicitors, the UDM and Vendside.
A series of public meetings are to be held in mining areas where claimants can sign up to the legal action, starting in Harworth, Nottinghamshire tomorrow.
“We believe that many millions of pounds have been paid out unnecessarily,” said senior partner Wynne Edwards. Any court hearing is not expected before the autumn.