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Investigation reveals signs of potential corruption in pandemic contracts

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Un estudio reciente de Transparency International UK ha mostrado indicios preocupantes de posible corrupción en contratos gubernamentales relacionados con el Covid, cuyo valor supera los £15.3 mil millones. Estos contratos, otorgados durante la pandemia por el gobierno liderado por los conservadores, representan casi un tercio del gasto total en adquisición del sector privado para suministros y servicios relacionados con la pandemia. Los hallazgos, que evidencian irregularidades generalizadas, han suscitado serios cuestionamientos sobre la transparencia y responsabilidad en la respuesta del gobierno ante la pandemia.

A recent investigation by Transparency International UK has revealed troubling signs of potential corruption in Covid-related government contracts worth more than £15.3 billion. These contracts, awarded during the pandemic by the Conservative-led government, constitute nearly one-third of the total spending on private sector procurement for pandemic-related supplies and services. The findings, which highlight widespread irregularities, have raised serious questions about the transparency and accountability of the government’s pandemic response.

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.

Un hallazgo destacado fue que cerca de dos tercios de los contratos de alto valor, que suman £30.7 mil millones, se otorgaron sin ningún tipo de licitación competitiva. Esta ausencia de competencia se considera un factor de riesgo significativo, ya que elimina controles y equilibrios cruciales destinados a asegurar que los fondos públicos se gasten de manera eficiente y justa.

The review also discovered eight contracts with a total value of £500 million that were awarded to companies that had been established for less than 100 days. The brief existence of these firms brought their qualifications and the validity of their selection into question. Transparency International UK stated that such practices are evident “red flags” for corruption.

Official reaction and rationale

Government response and justification

During the pandemic, the government, led by then-Prime Minister Boris Johnson, defended its decision to bypass traditional bidding processes, citing the urgent need for medical supplies. At the time, officials argued that the exceptional circumstances of the health crisis required swift action to secure vital resources. Personal protective equipment, ventilators, and testing kits were in high demand worldwide, and delays in procurement could have had life-threatening consequences.

Transparency International UK ha refutado la defensa del gobierno, argumentando que muchas de las salvaguardias suspendidas durante la pandemia podrían y deberían haberse mantenido. La organización benéfica afirma que el incumplimiento de estas salvaguardias ha costado a los contribuyentes miles de millones de libras y ha erosionado la confianza pública en las instituciones gubernamentales.

El costo de la corrupción

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 problem goes beyond monetary losses. The discoveries have also underscored the reputational harm to the UK government and its entities. Daniel Bruce, chief executive of Transparency International UK, voiced worry about the systemic vulnerabilities exposed by the analysis. “The occurrence of numerous red flags across contracts worth over £15 billion suggests more than mere coincidence or ineptitude,” Bruce remarked. He further noted that the procurement procedure enabled cronyism to thrive, aided by insufficient levels of transparency.

The issue extends beyond financial losses. The findings have also highlighted the reputational damage to the UK government and its institutions. Transparency International UK’s chief executive, Daniel Bruce, expressed concern over the systemic weaknesses revealed by the review. “The presence of multiple red flags across more than £15 billion of contracts indicates more than just coincidence or incompetence,” Bruce said. He added that the procurement process allowed cronyism to flourish, facilitated by inadequate levels of transparency.

Bruce also pointed out that no other country adopted a system like the UK’s VIP lane during their pandemic responses. He called on the Covid-19 public inquiry and the planned Covid corruption commissioner to hold those responsible accountable and ensure that lessons are learned to prevent similar issues in the future.

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.

The Covid-19 public inquiry, now progressing into its third phase, is anticipated to scrutinize the government’s management of the pandemic, particularly its procurement methods. Transparency International UK has urged the inquiry to focus on accountability and transparency, stressing the importance of structural reforms to avert the reappearance of similar problems in future emergencies.

The Covid-19 public inquiry, which is entering its third phase, is expected to examine the government’s handling of the pandemic, including its procurement practices. Transparency International UK has called for the inquiry to prioritize accountability and transparency, emphasizing the need for structural reforms to prevent the recurrence of such issues in future crises.

Background and ongoing challenges

Historical context and recurring issues

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.

The findings also echo broader concerns about the influence of political connections in public procurement. The awarding of contracts to firms with ties to politicians or donors has long been a contentious issue, with critics arguing that it undermines the principles of fairness and meritocracy.

Looking ahead

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.

Las revelaciones sirven como un claro recordatorio de la importancia de la responsabilidad y la transparencia, especialmente en tiempos de crisis. A medida que se desarrolla la investigación pública, el desafío será equilibrar la necesidad de acciones urgentes en emergencias con el imperativo de mantener los principios de equidad, integridad y responsabilidad en el uso de fondos públicos.

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 Kimberly Novankosv