Covid-19: NAO Report on Government Procurement

Kim Johnson Excerpts

Wednesday 9th December 2020 Westminster Hall

[Kim Johnson (Liverpool, Riverside) (Lab)]

It is a pleasure to serve under your chairship, Ms Eagle, and I congratulate my hon. Friend the Member for Liverpool, Walton (Dan Carden) on securing the debate.

Yes, we are living through unprecedented times, but it is disgusting that this pandemic has seen the wealth of billionaires rise by a third, while the poorest and most vulnerable are left destitute. They have been evicted from their homes and had their rights at work and wages slashed, with the number of universal credit applicants going through the roof. The report has proved beyond doubt that the Tories are profiting from this pandemic by handing lucrative contracts to their mates through the back door. A total lack of transparency and adequate documentation has been laid bare. At best, it is proof of a highly incompetent Government who cannot get the paperwork right. At worst, it is a deliberate attempt to cover the tracks of cronyism, to avoid scrutiny and to withhold information from the public.

Hundreds of contracts have been fast-tracked, and sources of referrals have gone undocumented. Documents are missing, and the pattern of suppliers being awarded contracts despite poor due-diligence ratings raises serious concerns around conflicts of interest and the lack of a proper process. The staggering report has exposed the fact that some contracts were awarded retrospectively after work had been carried out, including £3.2 million paid to Deloitte in July for work that it had been undertaking since March, jeopardising outcomes and accountability. Over £10 million-worth of covid contracts were awarded directly without any competitive tender process at all. One shameful example details the Department for Health and Social Care handing a contract for testing vials to the Secretary of State’s mate after a WhatsApp exchange, despite his having no experience whatever in medical supplies.

With all this evidence laid bare in black and white, can the Minister tell me how the public can have any trust that the Government are truly making decisions in our best interests? The revelations from the National Audit Office confirm once again that the Tories are happy to shell out millions to their mates, while the rest of us are told to tighten our belts as we are forced to pick up the tab for this pandemic. The sacrifices of working people in fighting this pandemic have been immense, serving communities and keeping the country going. The outsourcing clearly shows that the Government have no concern for their responsibilities or for getting value for money for the taxpayer, with outsourcing impacting on workers. As the Government hand out contracts to outsourcing firms, can the Minister tell me how they are ensuring that the workers are protected and treated fairly?