London hospital sues Carillion for fraud

Chelsea and Westminster Hospital NHS Trust is suing Carillion in a multi-million pound legal battle after accusing it of fraud.

The Trust has filed a High Court writ claiming it has been charged more than £2m for work which was never carried out. The Trust accuses Carillion of concealing the fact that the work had not been carried out, and of fraud.

It is now seeking repayment of its money, and damages for breach of a written contract. The dispute relates to a facilities management contract at Chelsea and Westminster Hospital in Fulham Road.

In 1999, the Prince of Wales opened new £25 million cancer laboratories at the hospital which had been built by Carillion. Carillion entered into a contract to provide non-clinical support services, including catering, cleaning, security, car parking, portering, estates, transport, and linen services, at the 513 bed acute teaching hospital in 1997.

But the Trust says Carillion is guilty of breach of contract and negligence, and has made fraudulent misrepresentations.

The case centres around invoices presented by Carillion for work ostensibly carried out, which had not been carried out either properly or at all, the writ says.

The Trust is seeking repayment of £2,107,695 which is the total paid to Carillion between April 1 1997 and March 31 2004, for work invoiced, which had either not been carried out properly, or not at all, the court will hear.

The trust accuses Carillion of deliberately concealing the fact the work had not been carried out, or carried out properly, and of fraud and fraudulent misrepresentation about presenting invoices, despite knowing the work to which the invoices related had not been carried out, or not been carried out properly.

The Trust says it paid the £2 million through a mistake, which was its mistaken belief that the work had been properly carried out.