Commons Sense

House of Commons · Ministers' Questions

Covid-19 Pandemic: Cost to Public Purse of Public Procurement Fraud

Thursday 25 July 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The estimated cost to the public purse of fraud in public procurement during the covid-19 pandemic is 10.5 billion.
  • The new Government appointed a new covid counter-fraud commissioner to address the issue of fraud and waste.
  • The Minister is willing to meet to discuss specific cases of fraud and to use every lever available to recover funds owed to the British people.

Topics (select to filter)

Questions & Answers

Q1 Ben Coleman Lab Chelsea and Fulham
Economy Taxation Business Compliance
Context

Concerns about fraud and waste in public procurement contracts awarded during the COVID-19 pandemic, with specific concerns over a supplier receiving more than £25 million for questionable PPE.

Question

What recent estimate has been made of the cost to the public purse of fraud in public procurement during the covid-19 pandemic. In my corner of London, concerns have been expressed about a particular supplier being awarded contracts worth more than £25 million for useless PPE after being put forward by a former Minister through VIP lanes.

Answer from Georgia Gould

The previous Government allowed waste and fraud to spiral out of control, with latest estimates showing £10.5 billion in estimated fraud and error in covid-19 schemes. The new Government are taking action by appointing a new covid counter-fraud commissioner who will use every means possible to recoup public money. I have met the Public Sector Fraud Authority to strengthen the counter-fraud approach across Government, and the counter-fraud commissioner reports directly to the Chancellor.

Partly answered

Not addressed: The specific case of £25 million contract awarded for useless PPE was not addressed.

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Q2 Luke Murphy Lab Basingstoke
Economy Taxation Benefits & Welfare
Context

Public sector fraud saw a significant increase during the pandemic due to lack of oversight and proper due diligence, with billions in potential recovery.

Question

With billions of pounds still in the hands of fraudsters, it is imperative that the new Government work quickly to recover what was lost. What steps will the Government and her Department take to ensure that the money is recovered as quickly as possible, and indeed that something like this never happens again?

Answer from Georgia Gould

The previous Government oversaw VIP lanes that led to millions in waste, and we are still unpicking the impact of that lack of oversight. I have met the Public Sector Fraud Authority to set out my commitment to strengthening the counter-fraud approach across Government. The counter-fraud commissioner has been introduced to support their work, using every means possible to recoup public money.

Partly answered

Not addressed: Specific steps for rapid recovery of funds and preventing future occurrences were not detailed.

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Q3 Ben Coleman Lab Chelsea and Fulham
Taxation Standards & Ethics
Context

Concerns about a supplier receiving more than £25 million for questionable PPE after being put forward through VIP lanes.

Question

In my corner of London, concerns have been expressed about a particular supplier being awarded contracts worth more than £25 million for useless PPE, after being put forward by a former Minister in the VIP lane. Could the Minister say more about how the Public Sector Fraud Authority and the Treasury will ensure that every penny that can be returned is returned to the public purse?

Answer from Georgia Gould

I am happy to meet my hon. Friend to hear more about the individual example from their constituency. We have set out that tackling fraud is an absolute priority for the Cabinet Office, and we will use every lever available to us to get back what is owed to the British people. The Public Sector Fraud Authority is already working closely with the Treasury on the role of the counter-fraud commissioner.

Partly answered

Not addressed: The specific case involving £25 million contract for questionable PPE was not directly addressed.

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