Bain & Company: Public Sector Contracts

Lord Hain Excerpts

Monday 13th June 2022 Lords Chamber

Asked by

[Lord Hain]

To ask Her Majesty’s Government what steps they will take to ban Bain & Co from securing further public sector contracts.

[The Minister of State, Cabinet Office (Lord True)]

My Lords, individual departments and other public sector bodies are responsible for their own decisions in these matters but, at the Prime Minister’s request and against the background of Judge Zondo’s report, officials at the Cabinet Office are actively reviewing this matter. The review process is nearing completion and the final report and recommendations are expected to go to Ministers within weeks.

[Lord Hain (Lab)]

I thank the Minister for that response but is it not utterly shameful that Ministers are still permitting Bain & Company to bid for multi-million pound government contracts, like those it has won in recent years, when the company has recently been found by a South African judicial inquiry to be guilty of unlawful complicity in corruption under former President Zuma? Surely Ministers must accept an amendment to the Procurement Bill, excluding any company with a record of such illegal behaviour from being awarded British taxpayers’ money, or am I going to get another weaselly response like the one in a letter from Jacob Rees-Mogg?

[Lord True (Con)]

My Lords, I pay tribute to the noble Lord for his pursuit of this matter and accept that it is important. The company concerned is not a strategic supplier to the Government and is not currently undertaking any substantial work for them. As I have said, the final report and recommendations in relation to this will come and these matters can obviously be discussed on the Procurement Bill, which covers the grounds for exclusion of bidders from public procurement.

--- Later in debate ---

[Lord True (Con)]

My Lords, I am advised that there is not a current contract with central government. If I am incorrect, I will correct that. I am aware of one live contract that Bain has with an NHS trust, which has a contract value of approximately £2 million.

[Lord Hain (Lab)]

My Lords, I am sorry to pursue this again after the noble Lord’s replies to me and to others, but I remind him that this company, under former President Zuma’s direct instructions, effectively denuded the South African Revenue Service of its capacity to raise taxes, especially from President Zuma’s friends and cronies. This was a complicity in corruption which is inexcusable. It is not good enough to say that a review awaits the final report of the Zondo commission. The Zondo commission’s report earlier this year specifically indicted Bain—I doubt it will have anything more to say about it—and referred the company for prosecution. Surely the Government should not have anything to do with it, otherwise all our words about money laundering and anti-corruption abroad and so on, and our legislation here to try to combat it, will mean nothing, when we are paying taxpayers’ money to companies like this one, as we did only a couple of years ago.

[Lord True (Con)]

My Lords, we are not paying taxpayers’ money to this specific company. I have said to the noble Lord that I greatly respect the way in which he has been pursuing this; it has been dogged. I am not here to defend actions that took place under the Zuma Government. We are obviously concerned; and we respect the great nation of South Africa. As I said earlier, we will work with it and draw conclusions in our relations both with South Africa and in the UK on this matter.