New Covid Corruption Commissioner Launches Investigation into PPE Procurement Fraud
Tom Hayhoe, the newly appointed Covid corruption commissioner, has begun a comprehensive investigation into personal protective equipment (PPE) procurement during the pandemic, focusing on recovering potentially lost public funds.
His primary tasks include reviewing £8.7bn of PPE that was written off the government’s books and examining the previous government’s decision to abandon attempts to reclaim £674m in questionable deals. Simultaneously, the National Crime Agency is conducting a separate criminal investigation into potential offenses within the PPE procurement system.
Chancellor Rachel Reeves specifically selected Hayhoe, leveraging his extensive procurement experience as a former NHS trust chair, to recover money lost to fraud and underperforming contracts. A Treasury source emphasized the chancellor’s commitment to reclaiming funds that “belong to the British people” and ensuring that “fraudsters who sought to profit off the back of a national emergency” are held accountable.
The investigation stems from significant financial losses during the pandemic. The Department for Health and Social Care (DHSC) lost approximately three-quarters of the £12bn spent on PPE in the first pandemic year, primarily due to inflated prices and equipment that failed to meet necessary requirements.
One notable case involves PPE Medpro, a company linked to Baroness Michelle Mone, which was awarded over £200 million in government contracts through a controversial “VIP lane”. Mone’s husband has accused the government of attempting to “scapegoat” the couple for procurement failures.
Interestingly, Sir Chris Wormald, the civil servant who oversaw DHSC during the pandemic, has since been appointed as the UK’s most senior civil servant, despite the significant procurement challenges.
Hayhoe’s appointment aligns with Labour’s manifesto commitment to establish a fixed-term commissioner dedicated to recovering pandemic-related fraudulent funds and undelivered contracts. His one-year contract, supported by a small Treasury team, will involve directly reporting to Chancellor Reeves.
At the conclusion of his term, Hayhoe will submit a comprehensive report detailing lessons learned and recommendations for government procurement during future crises. This approach aims to prevent similar financial mismanagement and improve transparency in emergency procurement processes.
The investigation represents a significant effort to address the financial irregularities that occurred during the pandemic’s urgent procurement efforts, balancing the need for rapid response with fiscal responsibility and accountability.
By thoroughly examining the PPE procurement process, Hayhoe’s work seeks to restore public trust and ensure that future emergency responses are more carefully managed, with robust safeguards against potential fraud and wasteful spending.
