A landmark study by Transparency International UK has identified corruption 'red flags' in government Covid contracts worth more than £15bn, representing nearly one in every three pounds awarded by the Conservative administration during the pandemic. The analysis, billed as the most in-depth look yet at public procurement during the crisis, warns that systemic bias, opaque accounting and uncontrolled pricing resulted in vast waste of public funds on testing and personal protective equipment (PPE).
The review of more than 5,000 contracts across 400 public bodies identifies 135 high-risk contracts with a value of £15.3bn where investigation is merited due to the identification of three or more corruption red flags. These include a lack of competition, delays or failure to release information on procurement, and conflicts of interest. At least 28 contracts, worth £4.1bn, went to those with known political connections to the Conservative party, while 51 contracts, worth £4bn, went through the 'VIP lane', a vehicle through which certain suppliers were given priority.
The report reveals that £1bn was spent on PPE from 25 VIP-lane suppliers that was later deemed unfit for use. The VIP lane was found unlawful by a high court judge in a 2022 ruling. Eight contracts, worth £500m, went to suppliers that were no more than 100 days old. The UK government awarded more than £30.7bn in high-value contracts without competition, equivalent to almost two-thirds of all Covid contracts by value. The Department of Health and Social Care wrote off £14.9bn in public money over a two-year period.
In response, a Conservative party spokesperson pointed to a National Audit Office report that found ministers had properly declared their interests. 'Government policy was in no way influenced by the donations the party received – they are entirely separate,' he said. Labour chancellor Rachel Reeves has said she will appoint a Covid corruption commissioner to examine an estimated £7.6bn worth of Covid-related fraud, with particular focus on the billions wasted on useless PPE.
The National Crime Agency is investigating PPE Medpro – a company led by Douglas Barrowman, husband of Conservative peer Michelle Mone – which was awarded government contracts worth more than £200m. Barrowman and Lady Mone deny any wrongdoing. Researchers warn of a potential higher cost to the public purse than that acknowledged by Reeves as a result of the previous administration's widespread and 'often unjustifiable' suspension of procurement checks and safeguards.
