Recommendation 12

We have found in our reports on the government’s response to the COVID-19 pandemic, that the need to act at speed can reduce transparency and increase the risk of fraud and error. In our report examining Government procurement and the supply of Personal Protective Equipment, we found that Government had faced significant challenges in having to work at pace, using emergency procurement procedures in a competitive international market. But its failure to be transparent about decisions, publish contracts in a timely manage or maintain proper records of key decision left if open to accusation of poor value for money, conflicts of interest and preferential treatment of some suppliers. While levels of fraud were low, the costs could run into millions of pounds.43 Similarly, in our report on the Bounce Back Loan Scheme, we concluded that shortcoming in the Scheme’s design had exposed the taxpayer to potentially significant losses and that plans to manage risks from the taxpayer from fraud and borrowers who were unable to replay loans were woefully under-developed. Government had been prepared to accept a higher level of risk to ensure that loans were available to businesses as quickly as possible. The 36 C&AG’s Report, paras 1.11–1.18 37 Qq 70, 74 38 C&AG’s Report, para 1.20 39 Qq 78, 80 40 Q 84 41 Q 85 42 Qq 78, 80, 85–86 43 Public Accounts Committee, COVID-19: Government procurement and the supply of Personal Protective Equipment, Forty Second Report of Session 2019–21, HC 928, 10 February 2021 COVID-19: Government Support for Charities 13 Department for Business, Energy and Industrial Strategy estimated that potential losses from fraud and credit risks were between £15 billion and £26 billion, and could be even higher and the estimate was highly uncertain.44