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New investigation reveals warning signs in pandemic agreements

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A new study conducted by Transparency International UK has uncovered alarming indicators of possible corruption in government contracts related to Covid, with a value exceeding £15.3 billion. These contracts, issued during the pandemic by the Conservative-led administration, represent almost a third of all expenditures on private sector procurement for supplies and services linked to the pandemic. The report, which points out extensive discrepancies, has sparked significant concerns regarding the transparency and accountability of the government’s actions during the pandemic.

La organización benéfica contra la corrupción identificó 135 contratos que consideró de “alto riesgo”, cada uno señalado con al menos tres indicadores de posible corrupción. Entre las revelaciones más inquietantes se encuentran contratos por un valor de £4.1 mil millones adjudicados a empresas con vínculos políticos conocidos y £4 mil millones distribuidos a través de un polémico sistema de “vía VIP”, que permitía a las empresas recomendadas por diputados y pares eludir los procesos estándar de adquisición. Un fallo del Tribunal Superior ha declarado ilegal la vía VIP. Transparency International UK está ahora instando a las autoridades a investigar más a fondo estos contratos.

Un desglose de los hallazgos

Transparency International UK carried out a thorough examination of more than 5,000 contracts related to Covid. Their assessment highlighted the suspension of usual procurement protections amid the pandemic, which the government defended as essential to speed up the provision of vital supplies such as personal protective equipment (PPE). Nevertheless, the organization contends that ignoring these safeguards fostered conditions conducive to favoritism and corruption.

A striking discovery indicated that almost two-thirds of the high-value contracts, totaling £30.7 billion, were granted without any competitive bidding process. The absence of competition is viewed as a major risk factor, as it eliminates essential checks and balances intended to guarantee that public funds are distributed effectively and justly.

Además, el análisis identificó ocho contratos con un total de £500 millones otorgados a empresas de menos de 100 días de antigüedad. La corta existencia de estas firmas generó dudas sobre sus calificaciones y la legitimidad de su selección. Transparency International UK señaló que tales prácticas son claras “señales de alerta” para la corrupción.

Respuesta y justificación del gobierno

Throughout the pandemic, the government, under the leadership of then-Prime Minister Boris Johnson, justified its choice to forego conventional bidding procedures, pointing to the pressing need for medical supplies. Officials contended that the extraordinary conditions of the health emergency necessitated rapid measures to obtain essential resources. There was a global demand for personal protective equipment, ventilators, and testing kits, and any delays in obtaining these items could have resulted in dire outcomes.

Un portavoz del Partido Conservador reiteró que la política gubernamental no fue influenciada por donaciones políticas o conexiones. “La adjudicación de contratos estuvo completamente separada de las actividades del partido”, afirmó el portavoz. Sin embargo, tales garantías han hecho poco para calmar las críticas públicas, especialmente a la luz del fallo del Tribunal Superior en contra del sistema de vía VIP.

Transparency International UK has opposed the government’s justification, stating that numerous safeguards lifted during the pandemic could have been maintained. The organization asserts that neglecting these protections has resulted in billions of pounds in taxpayer losses and has diminished public confidence in government bodies.

Transparency International UK has countered the government’s defense, arguing that many of the safeguards suspended during the pandemic could and should have remained in place. The charity claims that the failure to adhere to these safeguards has cost taxpayers billions of pounds and eroded public trust in government institutions.

The economic impact of these procurement methods is overwhelming. Out of the £48.1 billion allocated by the government for pandemic-related contracts, nearly £14.9 billion has been dismissed as losses by the Department of Health and Social Care. This figure encompasses about £1 billion spent on PPE that was considered unfit for use, as reported by Spotlight on Corruption, another NGO dedicated to ensuring accountability in public spending.

The financial consequences of these procurement practices are staggering. Of the £48.1 billion spent by the government on pandemic-related contracts, nearly £14.9 billion has already been written off as losses by the Department of Health and Social Care. This includes approximately £1 billion spent on PPE deemed unfit for use, according to Spotlight on Corruption, another non-governmental organization focused on accountability in public spending.

Bruce también señaló que ningún otro país adoptó un sistema similar al de la vía VIP del Reino Unido durante sus respuestas a la pandemia. Hizo un llamado a la investigación pública sobre el Covid-19 y al planificado comisionado de corrupción del Covid para que responsabilicen a quienes corresponda y garanticen que se aprendan lecciones para prevenir problemas similares en el futuro.

Demands for responsibility and change

Reacting to the revelations, Transparency International UK has dispatched an in-depth report to the National Audit Office, the Public Accounts Committee, and Chancellor Rachel Reeves. The organization is advocating for these entities to probe the high-risk contracts and introduce reforms to bolster public procurement procedures.

In response to the findings, Transparency International UK has sent a detailed report to the National Audit Office, the Public Accounts Committee, and Chancellor Rachel Reeves. The charity is urging these bodies to investigate the high-risk contracts and implement reforms to strengthen public procurement processes.

Los críticos sostienen que la incapacidad del gobierno para garantizar prácticas de adquisición transparentes y justas durante la pandemia ha debilitado la confianza pública en su capacidad para gestionar los fondos públicos. Están exigiendo mecanismos de supervisión más estrictos, mayor transparencia en la adjudicación de contratos y medidas para prevenir una influencia política indebida en las decisiones de adquisición.

Critics argue that the government’s failure to ensure transparent and fair procurement practices during the pandemic has undermined public confidence in its ability to manage public funds. They are demanding stricter oversight mechanisms, greater transparency in contract awards, and measures to prevent undue political influence in procurement decisions.

No es la primera vez que las prácticas de adquisición del gobierno del Reino Unido han estado bajo escrutinio. Un informe de la Oficina Nacional de Auditoría publicado en noviembre de 2020 no encontró evidencia de participación directa de ministros en las decisiones o gestión de contratos. Sin embargo, el informe destacó debilidades significativas en la supervisión y rendición de cuentas, especialmente en la adjudicación de contratos sin competencia.

This is not the first time the UK government’s procurement practices have come under scrutiny. A National Audit Office report published in November 2020 found no evidence of direct ministerial involvement in contract decisions or management. However, the report did highlight significant weaknesses in oversight and accountability, particularly in the awarding of contracts without competition.

The suspension of safeguards during the pandemic is reminiscent of similar practices observed in other emergency situations, where urgency often becomes a justification for bypassing standard procedures. Transparency advocates warn that such practices, while expedient, can open the door to corruption and inefficiency.

Perspectivas futuras

Mientras el Reino Unido lidia con las secuelas de la pandemia, el enfoque ahora se centra en garantizar que no se repitan los errores del pasado. La investigación pública sobre el Covid-19 y el planificado comisionado de corrupción del Covid desempeñarán roles cruciales en descubrir el alcance total de los problemas y en responsabilizar a los involucrados.

As the UK grapples with the fallout from the pandemic, the focus now shifts to ensuring that the mistakes of the past are not repeated. The Covid-19 public inquiry and the planned Covid corruption commissioner will play crucial roles in uncovering the full extent of the issues and holding those responsible to account.

For Transparency International UK, the priority is clear: rebuild public trust by implementing robust safeguards and enforcing transparency in public procurement. The charity has called on the government to take swift action to address the systemic weaknesses highlighted by its review and to adopt international best practices for corruption prevention.

The revelations serve as a stark reminder of the importance of accountability and transparency, particularly in times of crisis. As the public inquiry unfolds, the challenge will be to balance the need for urgent action in emergencies with the imperative to uphold the principles of fairness, integrity, and accountability in the use of public funds.

The road to restoring trust in government institutions will not be easy, but it is a necessary step to ensure that future crises are managed more effectively and ethically. By learning from the mistakes of the pandemic, the UK has an opportunity to strengthen its systems and set a new standard for public procurement in the years to come.

By Thomas Greenwood