Ministers Back Union Fraud Probe

A miners' union has been warned by ministers it could be suspended from handling compensation claims while police investigate fraud allegations.

Police in South Yorkshire are examining claims the Union of Democratic Mineworkers' (UDM) has made millions of pounds from the compensation scheme.

Energy Minister Malcolm Wicks said he wanted "full speed" for the inquiry.

He has not ruled out suspending the UDM, which denies wrongdoing, from handling the compensation claims.

Two of the union's officials are standing down while the investigations continue.

Police inquiries

The allegations centre around what is the world's biggest personal injury compensation scheme.

Already £2.6bn has been paid to former miners, their widows and families for chronic lung disease and vibration white finger and 700,000 claims are being processed.

Officers are thought to be examining the relationship between the UDM and solicitors' firms.

Mr Wicks said: "This is a decent scheme for the coal miners of Britain who have suffered ill health effects digging coal out of mines to benefit our economy and to benefit our country.

"If people are playing fast and loose with it, I will not tolerate that."

In a Commons statement, Mr Wicks said he could not comment on the police investigations, which so far has resulted in no criminal charges.

But he stressed there was nothing to suggest there had been fraud against people claiming compensation, nor was the UDM given a "preferential agreement" in handling the cash claims.

"The investigation is focused solely on issues related to the costs of handling claims and not the payment of compensation to claimants," said the minister.

'Double charging'

The government is now asking the union to provide a full list of the compensation claims it has handled "to ensure that any potential fraud is capped".

Mr Wicks said his department had asked the Law Society for an "urgent report" on its inquiries into "double charging" by solicitors - although this is not the subject of the fraud probe.

He stressed he was prepared to take further action if needed.

"For example, I have certainly not ruled out the option of suspending the operation of the UDM contract while the police inquiries continue," said Mr Wicks.

"I have therefore asked officials and our claim handlers to assess what impact such action might have on the schedule for the payment of claims."

Union's reaction

The union says it is confident there has been no wrongdoing.

On Thursday, its Nottinghamshire branch said officials Mick Stevens and Clare Walker were to stand down from their posts until police finished their inquiry.

Branch president Neil Greatrex said in a statement: "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."

The Nottinghamshire-based UDM, which has around 1,300 members, broke away from the National Union of Mineworkers during the bitter year-long miners' strike in 1984.

source: BBC News (Last Updated: Thursday, 30 June, 2005)

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