Corruption review finds 'red flags' in more than 130 COVID-19 contracts

An anti-corruption charity said it had discovered major problems in more than £15.3 billion worth of contracts awarded by the Conservative government during the coronavirus crisis, equivalent to one in every £3 spent.

Transparency International UK found 135 "high-risk" contracts with at least three red flags - warning signs of a risk of corruption.

Twenty-eight contracts worth £4.1bn were awarded to companies with known political connections, while 51 contracts worth £4bn went through "VIP access" to companies recommended by MPs and peers, a practice the High Court ruled was illegal.

A Conservative Party spokesman said: "Government policies are not in any way influenced by the donations the party receives - they are completely independent."

Transparency International UK analyzed 5,000 red flag contracts.

The charity said its analysis also showed that nearly two-thirds of high-value contracts to supply items such as masks and protective medical equipment during the pandemic - totaling £30.7bn - were awarded without any competition.

A further eight contracts worth a combined £500m were signed no more than 100 days ago, another red flag for corruption.

During the pandemic, normal safeguards aimed at protecting the government contract bidding process from corruption were suspended.

Boris Johnson's government demonstrated this at the time by highlighting the need to shorten the tendering process to speed up the supply of much-needed items such as personal protective equipment (PPE).

But Transparency International UK, a central player in the Covid-19 inquiry that begins its third module on Monday, said suspending normal safeguards was often unjustified, costing billions in public funds and eroding trust in political institutions.

It urged authorities to investigate the high-risk contracts it identified.

The charity said it had written to the National Audit Office, the Public Accounts Committee and Chancellor Rachel Reeves outlining the findings and the contracts involved.

Chief executive Daniel Bruce said: "We have identified multiple red flags across more than £15bn of contacts, equivalent to a third of all such spend, and this is not just coincidence or incompetence. "

He added, “The COVID-19 procurement response was riddled with systemic weaknesses and political choices that led to cronyism, all fueled by a severe lack of public transparency.”

“As far as we know, no other country is using a system like the UK’s VIP lanes in its COVID-19 response.

Mr Bruce continued: “The cost to public funds has become increasingly clear as huge losses are caused by unusable PPE from substandard suppliers. “We strongly urge the Covid-19 Inquiry and Covid Plans to be set up The Corruption Commissioner ensures full accountability and ensures the new government learns lessons quickly."

A total of £48.1 billion of public money was spent on private sector contracts related to the Covid-19 pandemic, of which £14.9 billion was written off by the Department of Health and Social Care.

Another person said around £1bn of this was spent on personal protective equipment deemed unfit for use. non-governmental organizationfocusing on corruption.

National Audit Office investigation into public procurement during pandemic, Published in November 2020found no evidence of ministerial involvement in procurement decisions or contract management.