• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Politics

Tory-linked firms given VIP access to PPE contracts worth billions – report

The National Audit Office found that suppliers with links to Tory politicians were ten times more likely to be awarded contracts.

Henry Goodwin by Henry Goodwin
2020-11-18 12:25
in Politics
FacebookTwitterLinkedinEmailWhatsapp

The government established a fast-track VIP lane to purchase billions of pounds of PPE from little-known companies with political contacts in the Conservative party, a shocking report has revealed.

With ministers already under fire for fostering a ‘chumocracy’ at the heart of government, the National Audit Office (NAO) found that suppliers with links to Tory politicians were ten times more likely to be awarded contracts than those who applied to the Department of Health and Social Care.

The damning report also found that more than £5 million of taxpayer cash was paid in consultancy fees with close links to ministers – including a £1.5 million deal for two social media consultants from New Zealand who worked on Boris Johnson’s election campaign.

‘High-priority’

The NAO said the government’s procurement efforts during the coronavirus crisis “diminished public transparency”, and accused officials of failing to meet “standards that the public sector will always need to apply if it is to maintain public trust”.

By the end of July, more than 8,600 contracts worth close to £18 billion had been awarded – and £10.49 billion of those were awarded directly to the supplier without any competition or tendering process. In some instances, due diligence was not carried out until weeks after contracts were awarded.

The “high-priority lane” was open for companies referred by government officials, ministers, MPs and peers – sources “considered to be more credible”, the report said.

Roughly one-in-ten suppliers processed through the VIP channel – 47 out of 493 – obtained lucrative PPE contracts, compared to less than one-in-a-hundred suppliers that came through the ordinary lane.

In one particularly revealing case, PestFix – a pest control firm from Littlehampton in Sussex – was “added to the high-priority lane in error without a referral”, the NAO said. The company, which has net assets of just £18,000, was awarded a £350 million contract to supply PPE to the NHS.

Part of that contract was a deal to buy 25 million FFP2 face masks. After 600,000 of the masks were delivered, it emerged that they were “not in line with the government’s published PPE specifications” – and were therefore unusable. PestFix “is continuing to work” with the Department of Health, the report revealed.

RelatedPosts

Reform policies would ‘create a fiscal calamity to rival Liz Truss’ – The Economist

Jacob Rees-Mogg faces ‘dilemma’ – after reportedly failing to rule-out a defection to Reform

Scottish Lib Dem leader sold his Tesla after Musk’s salute

MAGA fury after realising Pope Leo XIV is anti-Trump and ‘woke’

Another fast-tracked company, Ayanda Capital, received a £253 million that was brokered by a businessman who was appointed as an adviser to the Board of Trade by Liz Truss, the trade secretary. Again, ministers ordered 50 million FFP2 masks that were ultimately unusable – because they had the wrong kind of ear loops.

‘Ridden roughshod’

Meg Hillier, chairwoman of the public accounts committee, said the government’s procurement efforts had “ridden roughshod over the taxpayer and ripped up too many of the rules that guard against cronyism.”

“It’s bad enough that it set up a ‘high-priority lane’ to fast-track companies with the right connections,” she said. “But the failure to track how half the companies had ended up on it made it impossible to ensure proper safeguards were in place.”

Gareth Davies, head of the NAO, said: “While we recognise that these were exceptional circumstances, it remains essential that decisions are properly documented and made transparent if government is to maintain public trust that taxpayers’ money is being spent appropriately and fairly.

“The evidence set out in our report shows that these standards of transparency and documentation were not consistently met in the first phase of the pandemic.”

Related: Damning government spending report findings “the tip of the iceberg”

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← ‘National scandal’ as over half of teachers have worked with homeless children ← Johnson ticked off for calling SNP the Scottish ‘Nationalist’ Party in first virtual PMQs
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->