Labour calls for government to ‘crack down on cronyism’ amid PPE contracts saga
Labour has urged the government to “crack down on cronyism” as it claims almost £2bn of taxpayer money has been awarded to “friends and donors” of the Conservative party during the pandemic.
In an online speech, shadow Cabinet Office minister Rachel Reeves said the awarding of contracts for personal protective equipment (PPE) during the pandemic had been “rife with conflicts of interest”.
“We have seen the Tory government mishandle this crisis,” she said. “The government’s own conduct has corroded so much trust [through] dodgy contracts worth enormous sums of money given to friends and donors of the Conservative party.”
Reeves added that “cronyism in contracting” had led to an “unforgivable waste” of public money, and highlighted the need for tougher transparency rules.
“Across the country, our amazing British businesses have responded so well to the pandemic and under incredibly difficult circumstances,” she told Labour members. “But instead of using them, the government chose to prioritise contracts for friends, for donors, and for a handful of large companies often with very poor track records.”
The shadow Cabinet Office secretary called for a new ethics watchdog to “guarantee standards” for spending public money, after pointing out fruitless PPE contracts handed out during the pandemic.
It comes after a National Audit Office (NAO) report in November found that more than half of contracts awarded by the end of July last year had been handed out without competitive tender.
The report highlighted a £253m contract awarded without competitive tender to investment firm Ayanda Capital to procure PPE for the NHS during the pandemic. The figure included £155m that was spent on facemarks that were deemed unfit for use within the NHS.
The NAO also found the government handed out lucrative PPE contracts through a “high priority lane” for Tory-linked firms.
Roughly one in ten suppliers processed through the VIP channel obtained PPE contracts, compared to less than one in a hundred suppliers that went through the ordinary procurement lane, according to the spending watchdog.
Reeves told Sky News this morning: “Things like that just don’t sit comfortably with me, adding that ministers “need to crack down on the cronyism that we’ve seen and instead invest in our vital public services.”
A Conservative Party spokesperson said: “Throughout the pandemic British businesses have worked with our public services to help in the fight against coronavirus by delivering a wide variety of support, including PPE, hand sanitiser and ventilators.
“Yet at every turn throughout the pandemic, Labour have tried to play politics and score political points.
“The Conservatives are getting on with the job, rolling out the vaccine and delivering on our commitments.”