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Warning issued over Grenfell fire alarm contractor
Councils should check fire safety work carried out by a contractor responsible for Grenfell Tower’s fire alarms, Hackney Council’s mayor has warned.
In a letter to 166 council chief executives, Philip Glanville wrote that Lakehouse – whose compliance business, Allied Protection, tested and maintained fire alarms for Kensington and Chelsea Council – carried out fire safety works for Hackney Council in 2011. This work is now the subject of a police investigation.
Hackney Homes, the council’s former arms-length management organisation, oversaw the fire safety work, including installing fire alarms and smoke alarms in a number of homes.
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The letter states that in 2014 the council received "allegations of fraud and overcharging" on the works and, upon inspection, found "incorrectly installed alarms and emergency lighting systems". It continued: "Hackney also immediately notified the police, and there is an ongoing criminal investigation."
Mr Glanville added the council had no evidence to suggest that work carried out on contracts to other councils by Lakehouse "was in any way at fault, so we do not wish to cause undue alarm".
The Metropolitan Police confirmed that 10 people have been arrested in a police investigation into the fraud allegations on suspicion of various offences including bribery, money laundering and conspiracy to defraud. Three have been bailed until November and seven have been released under investigation. Two others were interviewed under caution but were not arrested.
Lakehouse said that the dispute between the company and Hackney Homes is "wholly unrelated" to the Grenfell Tower fire. It said that "at no stage has there been any suggestion of fraud on Lakehouse’s part" and insisted the investigation was related to "certain former rogue employees of and sub-contractors to Lakehouse" and also "representatives of Hackney".
It said it had terminated its contract with the sub-contractors and dismissed the two employees involved in the "alleged frauds".
It added that it had recently received £540,000 as a result of a "successful adjudication by Lakehouse against Hackney for works Hackney [Council] alleged were defective and were determined to be fully due and payable" and that it is continuing to "pursue Hackney [Council] for further sums which we are due contractually and for which they have refused to make payment to date".
