Beijing, 9 September 2024 (FinanceFlashNews) – A recent anti-corruption review has revealed concerning issues with £15.3 billion worth of Covid contracts awarded by the Conservative government. According to Transparency International UK, 135 high-risk contracts display multiple red flags indicating potential corruption (BBC News).
The review highlights that 28 contracts, amounting to £4.1 billion, were given to companies with known political ties. Additionally, 51 contracts totaling £4 billion were processed through a “VIP lane” for firms recommended by MPs and peers—a practice later declared unlawful by the High Court.
Transparency International UK scrutinized 5,000 contracts and found that nearly two-thirds of high-value contracts for essential supplies, such as masks and protective equipment—totaling £30.7 billion—were awarded without competitive bidding. Furthermore, eight contracts worth £500 million went to suppliers less than 100 days old, raising additional concerns.
The government, under Boris Johnson, had justified the suspension of normal procurement safeguards during the pandemic as necessary to expedite the delivery of essential items like personal protective equipment (PPE). However, Transparency International UK argues that this approach often lacked justification, leading to substantial financial waste and diminished public trust.
The charity has urged an investigation into these high-risk contracts and has shared its findings with the National Audit Office, the Public Accounts Committee, and Chancellor Rachel Reeves. Chief Executive Daniel Bruce emphasized that the prevalence of red flags in such a significant portion of contracts points to systemic issues beyond mere incompetence.
Daniel Bruce noted, “The Covid procurement response was marked by various points of systemic weakness and political choices that allowed cronyism to thrive, all enabled by woefully inadequate public transparency.”
Of the £48.1 billion spent on private sector Covid contracts, £14.9 billion was written off by the Department of Health & Social Care, including approximately £1 billion on unusable PPE. A National Audit Office inquiry from November 2020 found no ministerial involvement in procurement decisions or contract management.
Key Keywords: Covid contracts, corruption, Transparency International UK, red flags, VIP lane, PPE, Boris Johnson, public procurement, financial oversight.
Sources:
