Coronavirus: secret PPE scheme saw government hand billions to political ‘cronies’
Spending watchdog finds transparency standards were not met during pandemic response
Government ministers set up a VIP channel that allowed firms with political connections to pocket billions of pounds of taxpayer’s money during the Covid-19 response, a report has revealed.
The National Audit Office (NAO) report found that “suppliers with links to politicians were ten times more likely to be awarded contracts than those who applied to the Department of Health”, The Times reports.
The “damning” report adds that in some cases “due diligence checks were not carried out until weeks after contracts had been awarded”, adding to rising allegations of “cronyism” in the handing out of big money contracts, the paper adds.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Almost 500 companies with links to politicians or government officials were referred to the fast-track channel, meaning “their pitches for contracts were automatically treated as credible by government officials charged with procuring PPE”, The Guardian says.
The use of a VIP route to securing government contracts is a “highly unusual departure from standard procurement practice”, the paper adds.
It was only revealed by the NAO in a report showing that the UK government awarded £18bn of coronavirus–related contracts during the first six months of the pandemic. More than half (£10.5bn) of contracts relating to the pandemic were awarded without competitive tender, according to the NAO.
Officials paid out more than £5m in consultancy fees to companies with ties to ministers and the Conservative party, including signing off on a £1.5m deal with two New Zealand social media consultants who worked on Boris Johnson’s election campaign.
The NAO also drew attention to a pest control company, Pestfix, “that was mistakenly put in the high-priority route” resulting in a £350m contract for the delivery of 600,000 masks “that did not meet the standards for hospital use”, The Times says.
Labour MP Meg Hillier, chairperson of the public accounts committee, said the report showed the government had “ridden roughshod over the taxpayer... ripping up too many of the rules that guard against cronyism”.
Julia Lopez, Cabinet Office minister, said: “We have robust processes to ensure we get critical equipment, while also ensuring value for money for the taxpayer.”
Hall of shame
Ayanda Capital, received a £253m order for 50 million masks which could not be used by NHS workers, while Sabia Mokeddem, a 23-year-old financial trader, was given £880,000 to supply 55,000 coveralls.
Public First, a company run by two former Michael Gove aides, received a contract for a maximum of £840,000, of which £550,000 was invoiced. Faculty, an artificial intelligence firm that worked for Dominic Cummings on the Vote Leave campaign, was handed three contracts worth almost £3m.
Management consultancy firm Deloitte won a contract for delivering PPE to frontline workers worth £3.2m. It has since “come under fire over shortcomings in delivery”, The Times reports.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Joe Evans is the world news editor at TheWeek.co.uk. He joined the team in 2019 and held roles including deputy news editor and acting news editor before moving into his current position in early 2021. He is a regular panellist on The Week Unwrapped podcast, discussing politics and foreign affairs.
Before joining The Week, he worked as a freelance journalist covering the UK and Ireland for German newspapers and magazines. A series of features on Brexit and the Irish border got him nominated for the Hostwriter Prize in 2019. Prior to settling down in London, he lived and worked in Cambodia, where he ran communications for a non-governmental organisation and worked as a journalist covering Southeast Asia. He has a master’s degree in journalism from City, University of London, and before that studied English Literature at the University of Manchester.
-
'Good riddance to the televised presidential debate'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Caitlin Clark the No. 1 pick in bullish WNBA Draft
Speed Read As expected, she went to the Indiana Fever
By Peter Weber, The Week US Published
-
Today's political cartoons - April 16, 2024
Cartoons Tuesday's cartoons - sleepyhead, little people, and more
By The Week US Published
-
Is David Cameron overshadowing Rishi Sunak?
Talking Point Current PM faces 'thorny dilemma' as predecessor enjoys return to world stage
By The Week UK Published
-
How will honeytrap scandal change Westminster?
Today's Big Question Security procedures laid bare by spear phishing attack as focus shifts to 'political insider' being responsible
By The Week UK Published
-
Less than total recall
Editor's Letter Why our brains want to forget the darkest days of the pandemic
By Theunis Bates Published
-
'A wonky bureaucratic tweak has dramatically changed how Americans drive'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Will Aukus pact survive a second Trump presidency?
Today's Big Question US, UK and Australia seek to expand 'game-changer' defence partnership ahead of Republican's possible return to White House
By Sorcha Bradley, The Week UK Published
-
Farewell to Theresa May: a PM consumed by Brexit
Talking Point Maidenhead MP standing down at next general election
By The Week UK Published
-
Britain's biggest political donors
The Explainer With the 2024 general election set to be the highest-spending contest ever we look at who is giving to which party and why
By The Week UK Published
-
Can Boris Johnson save Rishi Sunak?
Today's Big Question Former PM could 'make the difference' between losing the next election and annihilation
By The Week UK Published