Government fraud investigators are looking into contracts to supply the NHS with PPE during the pandemic, officials at the Department of Health and Social Care (DHSC) have said.
Giving evidence to the Commons Public Accounts Committee, Jonathan Marron, the director general of the office for health improvement and disparities, said they had “concerns” over 176 contracts worth a total of £3.9 billion.
He said that the actual amount of equipment at issue was worth £2.7 billion – with concerns ranging from the quality of the kit provided to performance of the contractor.
The DHSC permanent secretary Chris Wormald said the level of suspected fraud was no higher than with other government contracts:
It is not unusual to be in dispute on some contracts. Some of them will be resolved entirely amicably, some of them will get to the other end of the spectrum where we believe there has been wrongdoing,” he told the committee.
Fraud in contracting is a fact of life, regardless of the circumstances. It would be astonishing if this was the only large set of government contracts in which there was no fraud at all.
What we haven’t seen is this set of contracts being more susceptible to fraud than the average.
Read on...Support us and go ad-free
Marron acknowledged that 1.1 billion items of PPE, worth £461 million, supplied during the pandemic had been identified as being unfit for any use.
However he said it represented “quite a small proportion” of the 19.8 billion items used in health and social care to the end of last month.
While some may be possible to resolve through mediation and commercial agreement, he said others may require a “more legal process”:
Support us and go ad-free
We are working really, really closely with our internal fraud teams and the broader fraud authorities.
That is part of what we are looking at, as to how we might bring resolution to these disputes. All options are on the table.
We know everyone is suffering under the Tories - but the Canary is a vital weapon in our fight back, and we need your support
The Canary Workers’ Co-op knows life is hard. The Tories are waging a class war against us we’re all having to fight. But like trade unions and community organising, truly independent working-class media is a vital weapon in our armoury.
The Canary doesn’t have the budget of the corporate media. In fact, our income is over 1,000 times less than the Guardian’s. What we do have is a radical agenda that disrupts power and amplifies marginalised communities. But we can only do this with our readers’ support.
So please, help us continue to spread messages of resistance and hope. Even the smallest donation would mean the world to us.