Source · Select Committees · Public Accounts Committee

Recommendation 11

11 Accepted

The Department did not appear to have considered potential concerns about Randox’s political connections in...

Recommendation
The Department did not appear to have considered potential concerns about Randox’s political connections in its decision making, such as Owen Paterson’s lobbying on behalf of Randox, hospitality offered to Matt Hancock by Randox’s managing director, or the company’s donations to the Conservative party. The Department said that it had been aware that Mr Paterson was a paid consultant for Randox while he was still a sitting MP, although it said this did not necessarily mean the company had been treated any differently to other potential suppliers. The Department noted it would not necessarily have been aware of Randox’s donations to the Conservative party or hospitality offered to ministers in a political capacity, and that these might not have been relevant to the consideration of conflicts of interest in this case. The Department said that it did not believe that Randox 15 Q 101 16 Letter from Matt Hancock, 20 May 2022 17 Q 85 18 Procurement Bill [HL], Part 5: Conflicts of interest, clauses 74–76 19 Q 103 20 C&AG’s Report, para 2.29 Government’s contracts with Randox Laboratories Ltd 11 had gained any benefit from its direct engagement via Mr Paterson or any other route.21 However, it is basic good practice to address, and be seen to address, any concerns where there may be a risk of conflicts of interest, including the perception of competing interests, impaired judgement or undue influence. This would involve identifying, documenting and managing risks that decisions may be influenced.22
Government Response Summary
The Department has written to the Committee on 31 October 2022 setting out its response regarding information on declared private interests and how it was used to identify potential conflicts of interest in its procurement decisions.
Government Response Accepted
HM Government Accepted
3: PAC conclusion: The Department did not deal with potential conflicts of interest, despite clear concerns about Randox’s political connections. 3a: PAC recommendation: Alongside its Treasury Minute response, the Department should write to us to clarify the information it had on declared private interests and how it used this information to identify potential conflicts of interest in its procurement decisions. 3.1 The government agrees with the Committee’s recommendation Recommendation Implemented 3.2 The department has written to the Committee on 31 October 2022 setting out its response as requested.