Three snared after Barratt fraud probe

ONE of Britain’s biggest housebuilders has suspended at least three more staff following the arrest of an executive on suspicion of bribery in a cash-for-contracts scandal.

Alastair Baird, managing director for London at Barratt Developments, was arrested in October as part of an inquiry by the Metropolitan Police.

The 52-year-old, who has overseen some of the capital’s biggest housing projects in recent years, was suspended by Barratt following his arrest at his pig farm in Gloucestershire where his wife Irayne Paikin makes awardwinning sausages.

But it has now emerged that at least three more employees within Barratt’s London business have been suspended as part of the investigation into potential misconduct in the awarding of contracts.

Barratt shares fell around 3pc in a matter of minutes yesterday as investors digested the latest setback for the firm. They finished the day down 1.7pc, or 8.2p, at 486.4p.

A spokesman for Barratt said it would be inappropriate to comment given the investigation by the company and the police.

Just last week Barratt was rocked by the departure of Neil Cooper, its finance director, after little more than a year in the job following clashes with other directors. The company said Cooper’s resignation was unconnected to the bribery probe.

The arrest of Baird came after the company launched an investigation into possible misconduct in the way contracts were awarded in London and passed its findings to the police. Baird was quizzed along with a 47-year-old woman from East London, who used to work for the housebuilder. They were released on bail until April. In October, Barratt chief executive David Thomas said the company ‘acted decisively’ by launching its own investigation and referring the matter to the police.

Baird had previously been described by the firm as ‘one of the most experienced and respected residential developers in the capital’. Projects he has overseen include the purchase of West Ham United’s former home, the Boleyn Ground, where Barratt plans to build 842 houses.

Baird and his wife, who have two daughters, paid £4m in cash for their Gloucestershire pig farm in 2005. They spend weekends there and the week at their £15m home in Hampstead, North London.

Barratt’s inquiry led to a civil case against another former employee, thought to be Michael Fitzpatrick, who was sacked in February last year after allegedly receiving secret payments from sub-contractors in return for influencing the award of tenders.

He is understood to be defending the claim.