Source · Select Committees · Public Accounts Committee
Recommendation 11
11
The Department acknowledges that it still has many PPE contracts that have ongoing contractual issues...
Conclusion
The Department acknowledges that it still has many PPE contracts that have ongoing contractual issues that need resolving. There are 176 contracts where there are concerns about either the quality or the performance of the contract and these are collectively worth £3.9 billion.27 The Department has assessed that of that £3.9 billion, contractual issues mean that £2.7 billion of taxpayer money is still at risk of not achieving value for money.28 However, it told us that it is not unusual for disputes to arise on contracts like these and that looking across the wider health service and the NHS many contractual disputes are “resolved entirely amicably” whilst at the other end of the spectrum some will have involved an element of wrongdoing.29
Government Response
Not Addressed
HM Government
Not Addressed
3: PAC conclusion: The Department remains in dispute on 176 contracts for PPE with £2.7 billion of taxpayer money at risk and has made little progress in tackling potential fraudulent supplies of goods. 3a: PAC recommendation: The Department should explain in its Treasury Minute response to the Committee its progress in resolving these cases and provide as full an update as is possible on the status of those negotiations. 3.1 The government agrees with the Committee’s recommendation Target implementation date: August 2023 3.2 Much of this information is commercially sensitive and could impact the department’s ability to successfully pursue cases to completion. Therefore, the department will provide a summary update on the progress of negotiations as a whole in confidence to the Committee. 3.3 Through Treasury Minute 6 published in August 2022, the department already committed to providing regular updates on progress as part of the quarterly reporting cycle. The first update on progress was provided to the Committee in August as part of the Q4 report and included information about the amount that has been reclaimed against the ‘value at risk’. 3.4 The department has established a Dissolution Team to work through the contracts in dispute to maximise the value obtained from taxpayer’s money. The Dissolution Team has been commissioned until March 2023 with quarterly targets to achieve resolution of contractual matters.