Covid-19: NAO Report on Government Procurement

Munira Wilson Excerpts

Wednesday 9th December 2020 Westminster Hall

[Munira Wilson (Twickenham) (LD)]

It is a pleasure to serve under your chairmanship, Ms Eagle.

The NAO report raises serious questions that the Government must address on both competency and cronyism. We have heard some of the numbers cited in the NAO report today from other Members, and they are staggering. Clearly, in the midst of a national—and indeed, an international—health emergency, where every country in the world was scrambling for supplies, standard procurement rules and processes needed to be relaxed; clearly, in such a competitive market, prices would skyrocket and some mistakes would be made.

However, the headless-chicken approach that the Government have pursued led to the procurement of millions of products that were not fit for purpose or that simply never materialised. For instance, £364 million was spent on full-body coveralls, with only 432,000 of those items delivered and used. That amounts to £840 per bodysuit, which is completely unacceptable.

We now know from the NAO report that companies placed on the VIP list were 10 times more likely to win contracts in the early months of the pandemic. There were no criteria for referrals to the fast-track lane, and the source of the referral was not always recorded, so I hope the Minister will outline clearly what criteria were used to assess offers from MPs, peers and Ministers, what processes were followed and what due diligence was undertaken on their credibility and suitability.

As we have heard already, many companies with no prior experience were awarded contracts, and others with good experience were turned down. The lack of transparency, the lack of risk management and the lack of a paper trail in relation to billions of pounds of public funds absolutely stinks.

Integrity, objectivity and accountability are among the seven Nolan principles of public life; these have been tested to destruction on numerous occasions, not least in the context of the whopping procurement decisions detailed in the NAO report. While NHS staff were wrapping themselves in bin bags and dying in the line of duty, and while schoolchildren were making DIY PPE, millions of pounds of public money was being siphoned off to inexperienced companies, many with links to the Conservative party.

Ministers must now commit to a thorough independent inquiry at the earliest possible opportunity, as the Liberal Democrats have been calling for. We should establish a cross-party committee to examine all contracts awarded for the remainder of the pandemic, not least in the roll-out of the vaccines.