By Chathushka Perera
LONDON, UK (CWBN)_ The National Audit Office (UK) report, published yesterday (Nov 17), revealed that over 8,600 Covid-19 related government contracts worth GBP 18 billion (USD 23.87 billion) have been handed out without adhering to due process.
While each contract is valued between GBP 100-410 million (USD 13-543.95 million), the report stated that 90% of them, worth GBP 16.2 billion (USD 21.49 billion), were made by the Department of Health and Social Care (DHSC) during the first seven months of 2020. In contrast, the previous year, the DHSC made 174 contracts, which is less that 7% of what awarded in first seven months of this year, worth GBP 1.1 billion (USD 1.46 billion).
Of the GBP 17.3 billion (USD 23.08 billion) worth in contracts made with suppliers, GBP 10.5 billion (USD 13.93 billion) did not adhere to the competitive tender process, GBP 6.7 billion (USD 8.89 billion) were handed over via pre-existing agreements likely made under a competitive tender process, and roughly GBP 0.2 billion (USD 0.27 billion) has been awarded based on competitive tenders and bids based on existing agreements. Lastly, GBP 0.7 billion (USD 0.93 billion) was awarded through revisions made to pre-existing contracts.
The Audit Office, reflected on the data, concluding that some of the contracts were handed over “after work had already been carried out”, risking underperformance and that contracts worth GBP 25,000 (USD 33,160) are yet to be published on transparency websites.
Chairperson of the House of Commons Public Accounts Committee, Meg Hillier, stated that the government “needs to come clean and immediately publish all the contracts it’s awarded so far.”
However, even though the Audit Office has announced serious concerns, the watchdog maintains that ministers have “declared their interests” and that there has been “no evidence of involvement” in the granting of contracts.
Moreover, Minister and Parliamentary Secretary for the Cabinet Office, Julia Lopez, who is in charge of government spending over contracts, responded to the concerns saying that the contracts had been procured out of “extreme urgency” and that a “robust” mechanism is in place to manage spending.
Edited by Elishya Perera
