Corruption risks in UK Covid-19 procurement

This month I was privileged to be asked to give evidence to the UK Covid-19 Inquiry on behalf of the UK Anti-Corruption Coalition as part of the Inquiry's module on the failures of the government's pandemic procurement. 

I presented findings from our Track and Trace and Behind the Masks reports— our landmark studies of UK Covid-19 procurement. These reports represent perhaps the most comprehensive analysis of corruption risks in pandemic procurement to date.

Our research examined over 5,000 contracts worth £48.1 billion, identifying 135 high-risk contracts with three or more corruption "red flags" totalling £15.3 billion – nearly one-third of all pandemic-related procurement spending. We found the UK's approach diverged significantly from international best practices and those of our European peers in several concerning ways:

1. Transparency Failures

   In my testimony, I highlighted the collapse of the UK's transparency regime during the pandemic. We found that 63% of COVID-19 contract notices (worth £30.1 billion) were published after the legal 30-day deadline, with some appearing more than a year after their award. This stands in stark contrast to Ukraine, which managed to publish contract information within 24 hours during its crisis response. 

   
   The quality of procurement data was also problematic, with widespread human error leading to inflated contract values (sometimes by tens of billions of pounds), inconsistent supplier naming conventions, and duplicate entries across multiple procurement portals. 
    

2. Excessive Use of Direct Awards

   Unlike EU countries which quickly returned to competitive procurement after the initial emergency, the UK continued using uncompetitive processes well into 2021. Almost two-thirds of high-value contracts (worth £30.7 billion) were awarded without competition, which the High Court later ruled was unlawful in some cases. 
    

3. The High Priority/VIP Lane 
   Perhaps most concerning was the UK's creation of the "High Priority Lane" or "VIP Lane" for PPE procurement. This system allowed politically-connected suppliers to bypass normal scrutiny, resulting in contracts that were 80% more expensive on average and delivered £1 billion in PPE deemed not fit for purpose. 
   
   Our analysis confirmed that all political referrals into this system came from members of the Conservative Party, creating what I described as "systemic political bias" in the awarding of these contracts.

Lessons for Future Pandemic Preparedness

Looking at international comparisons, I emphasised that countries like Canada managed their procurement more effectively through their mature, digitally-savvy centralised system called "Buy and Sell Canada." This allowed them to quickly and transparently match buyers with suppliers.

In contrast, the UK's fragmented, cumbersome approach felt like a "runaway train of spending and opacity." While many countries experienced procurement challenges, the UK government in essence created a system that invited corruption risk. 
 
The UK's response was notable for:

1. Relying heavily on direct awards far longer than peer nations
2. Creating a unique VIP Lane system that invited corruption risks
3. Suffering a total collapse in transparency requirements
4. Showing enormous variance in contract values with minimal controls

During my testimony I highlighted the work of the UK Anti-Corruption coalition and outlined several urgent recommendations, including:

1. Invest in procurement expertise – Establish a more professional, cross-government procurement function with centralised platforms and tools fit for purpose
2. Implement robust conflict of interest policies – Require both government departments and suppliers to have matching conflict of interest policies and management systems
3. Ensure transparency by design – Create centralised digital platforms that reduce human error in data entry and make information readily accessible
4. Reform emergency procurement regulations – Clarify when uncompetitive awards are justified and put appropriate safeguards in place
5. Ban the use of politically-biased referral systems – Ensure any future emergency response includes transparent criteria for assessing suppliers without systemic bias

The COVID-19 Inquiry offers a crucial opportunity to learn from these failures. I believe the UK must recognise that good transparency leads to better procurement outcomes and increased public trust. The shocking levels of waste in COVID-19 procurement – with billions spent on unusable PPE and inflated contracts – demonstrate why these reforms are urgently needed.

As I told the Inquiry, we must ensure that VIP lanes and similar approaches that invite corruption "never happen again."