The controversy is believed to have been sparked by former Bovis Lend Lease employee Brian Aryai, who wrote a letter to Lend Lease chairman David Crawford in March, which was provided to the New York District Attorney, Robert Morgenthau.
Below is a statement Lend Lease released yesterday, regarding the investigation:
Lend Lease Corporation Limited (“Lend Lease”) refers to recent media reports regarding investigations being conducted by the US Federal Attorney and New York
District Attorney of its subsidiary Bovis Lend Lease LMB, Inc. (“Bovis Lend Lease”) in New York.
Lend Lease advises that Bovis Lend Lease New York has received subpoenas and is fully cooperating with the authorities.
The investigations arise from allegations made by a former employee. These include an allegation relating to billing practices in respect of foremen taken out of the union pool where excess costs incurred by Bovis Lend Lease for payments made to union foremen were billed to clients. The union pool is a source of labour available to contractors in New York which is used by Bovis Lend Lease.
Bovis Lend Lease is conducting its own investigation of the matters raised and will assist the authorities wherever possible. Bovis Lend Lease will also take whatever remedial action is appropriate.