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Wednesday, December 28, 2022

Pitiful government failing to recover fraud losses

The Guardian reports that ministers have been accused of making a “pitiful attempt” to recoup taxpayers’ money wasted on fraudulent Covid contracts, after it emerged that only a fraction of the estimated total had been recovered so far.

They say that about £18m has been retrieved by the Department of Health and Social Care through checks on personal protective equipment (PPE) contracts identified as “high risk” and through “contract management”. However, the total amount estmated to have been defrauded is closer to £630m. thirty five times greater than that recovered:

The Public Accounts Committee, which scrutinises the value for money of government spending, also said a stockpile of items worth £3.9bn was not needed. It added that there were disputes with more than 100 suppliers over £2.7bn worth of stock – mostly over concerns about the quality of PPE provided.

Daisy Cooper, the Liberal Democrats’ health spokesperson, tabled the written question to [health minister] Quince that revealed the sum recovered so far. She criticised the government for having “frittered away” billions on useless PPE, and claimed the £18m figure was “a damning indictment” of the Conservatives’ record on “dodgy Covid contracts”.

Cooper said: “These pitiful attempts to recoup the money lost is adding insult to injury. Conservative ministers must step up efforts to recover the money wasted on Covid contracts handed out to their wealthy friends and donors during the pandemic.”

The Guardian understands that the Lib Dems are planning to table an amendment to the forthcoming procurement bill, which will have its second reading on 9 January, to ban “VIP lanes”, through which contracts were directly awarded to some firms.

Cooper said the move would stop “this staggering waste of public money from happening again” by preventing preferential treatment in government procurement processes being given to organisations and individuals recommended by MPs and peers.

The use of the VIP lane has come under renewed scrutiny, after the Guardian revealed that Michelle Mone and her children secretly received £29m originating from the profits of a business, PPE Medpro, that was awarded large government contracts and placed in the VIP lane after she recommended it to ministers.

In the context of the pay demands of health workers the amount lost through fraud is massive. Perhaps, if the government invested in the people who deliver health and care rather than reward their buddies through VIP procurement lanes, we might have a more robust health service with a stable and contented workforce.
Comments:
It has been long recorded by past Labour leaders that the Conservatives are no lovers of the ordinary person or thr NHS. They have long wanted to break it up.They show there 'efforts'by ensuring Universal Credit is hard to get and is not paid asap.This can be shown re if you have a3rd child you do not get paid for it.This is along with the bedroom tax.It has recently come to my notice that a single chap who has lived in his home for over 30yrs (had to leave work due to health reasons) has had deducted from his money 80 pounds cos he lives in a 3 bedroom house.He is trying to get aground floor flat but due to lack of social housing he is having to wait.
The govnt os good at making it hard for ordinary people to earn adequate money to live a contented life.In the meantime they find it 'hard' to investigate and recover money obtained by illicit means.Money that may have been procurred by the gravy chain of PPE contracts that they put in place.
 
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