Corruption review finds ‘red flags’ in more than 130 Covid contracts

An anti-corruption charity has flagged major issues with Covid-19 contracts totaling over £15.3 billion awarded by the Conservative government, indicating potential corruption risks in a third of all spending during the pandemic. Transparency International UK’s investigation revealed 135 contracts, representing a significant portion of the £48.1 billion allocated, exhibited multiple “red flags” for corruption.

Among the problematic contracts, 28, worth £4.1 billion, were awarded to firms with known political connections. Additionally, 51 contracts totaling £4 billion were processed through a “VIP lane” designed for companies endorsed by MPs and peers, a practice deemed unlawful by the High Court.

Transparency International UK’s review of 5,000 contracts also uncovered that nearly two-thirds of high-value contracts for essential items, such as masks and protective medical equipment, were awarded without competitive bidding. This amounted to a staggering £30.7 billion in contracts granted under non-competitive conditions. Furthermore, eight contracts worth £500 million were given to companies that had been in operation for no more than 100 days, another indicator of potential corruption.

Normal safeguards intended to prevent corruption in government contract bidding were suspended during the pandemic. The Johnson-led government defended this decision, citing the urgent need to streamline procurement processes to expedite the delivery of critical supplies like personal protective equipment (PPE). However, Transparency International UK contends that the suspension of these safeguards was frequently unjustified and resulted in significant financial losses and diminished public trust in government institutions.

The charity, which is actively participating in the Covid-19 inquiry as it enters its third phase, is calling for a thorough investigation into the high-risk contracts it has identified. Transparency International UK has communicated its findings to the National Audit Office, the Public Accounts Committee, and Chancellor Rachel Reeves, urging them to examine the contracts in question.

Daniel Bruce, Chief Executive of Transparency International UK, commented, “The identification of multiple red flags in over £15 billion of contracts, constituting a third of all spending, suggests more than mere coincidence or incompetence.” He added, “The Covid procurement response revealed systemic weaknesses and political choices that enabled cronyism, compounded by a lack of adequate public transparency. No other country utilized a VIP lane system like the UK’s in their Covid response.”

Bruce highlighted the financial repercussions, noting that significant sums were lost to unusable PPE from inadequately qualified suppliers. He urged the Covid-19 inquiries and the anticipated Covid corruption commissioner to ensure accountability and stressed the need for the new government to swiftly apply lessons learned from these issues.

Out of the £48.1 billion spent on private sector contracts related to Covid-19, the Department of Health & Social Care wrote off £14.9 billion. Of this, approximately £1 billion was allocated to PPE deemed unfit for use, as reported by another NGO, Spotlight on Corruption.

A November 2020 National Audit Office review of pandemic-related procurement found no direct evidence of ministerial involvement in procurement decisions or contract management. However, the scrutiny of these contracts underscores the need for increased transparency and accountability in government spending practices.