UK COVID contracts worth £15 billion raise corruption concerns

09 September 2024 , 20:05

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UK COVID contracts worth £15 billion raise corruption concerns

A new report by Transparency International UK claims that about a third of public contracts for COVID-19, totaling billions, bypassed standard procurement safeguards and were awarded to entities linked to the Conservative Party.

The document sheds light on the widespread failures and corruption risks that plagued the U.K.’s COVID-19 procurement processes. 

As the pandemic prompted an unprecedented public health response, authorities bypassed standard procurement safeguards in the rush to secure essential goods and services. This hasty approach, the report reveals, led to “staggering waste.”

The report identified 135 high-risk COVID-19 contracts, accounting for almost one third of COVID-19 response spending.  These included 28 deals, worth £4.1 billion (US$5.4 billion), struck with entities with political links to the then governing Conservative Party.  

Transparency International highlighted Westmininster’s persistent reliance on non-competitive procurement, awarding two thirds of total expenditure in this way thereby “setting aside the rigor of the market, which would normally act as a safeguard against cronyism.” 

Remarkably, the British government continued to allocate funds through direct awards more than a year into the pandemic while EU member states reverted to competitive bidding. 

The watchdog also criticized the now-notorious VIP lane, a special route for firms recommended by politicians and officials, which accounted for £1.7 billion-worth (US$2.2 billion) of high-risk contracts. These suppliers were found to have inflated their prices by an average of 80 percent when compared to supplies procured through other channels. 

VIP lane firms also supplied £1 billion worth (US$1.3 billion) of personal protective equipment that was found to be unfit for purpose, according to research by NGO Spotlight on Corruption.

The Guardian reported in 2022 that English courts found this practice that amounted to preferential treatment for some forms, unique to the British COVID response, to be unlawful.

Calling on authorities to investigate these high-risk contracts, TIUK also highlighted the need for improvement in government transparency and accountability to avoid the further erosion of public trust.

Emily Hughes