The UK government is unlikely to recover any money from SG Recruitment UK Ltd, a healthcare recruitment agency that failed to fulfill a multimillion-pound PPE contract awarded during the Covid pandemic. The Department of Health and Social Care (DHSC) has confirmed that it is in a dispute over the £20m-plus contract, but since the agency’s parent company, Sumner Group Holdings, has gone into liquidation, there are doubts about whether the government can reclaim any funds. SG Recruitment was granted its first contract in April 2020, shortly after being referred to the government’s “VIP lane” for fast-track procurement. The agency, which has since changed its name, was later awarded a second multimillion-pound contract. However, at the time of winning the first contract, SG Recruitment was a small, unprofitable company with no experience in providing PPE. This raises concerns about the government’s PPE procurement processes during the pandemic and its due diligence in awarding contracts. The DHSC has defended its processes, but critics have highlighted the £9bn spent on PPE that was ultimately written off, as well as the operation of the now-declared unlawful “VIP lane” that prioritized offers from politically connected companies. The government is attempting to recover £1.6bn spent on unsatisfactory PPE contracts but claims it cannot disclose the details due to confidentiality. SG Recruitment was placed in the VIP lane after being introduced by Conservative peer Lord Chadlington. It has been revealed that Chadlington, a director and shareholder of SGH, the parent company, provided SG Recruitment’s CEO with an email address of a fellow Conservative peer who was advising the DHSC on PPE procurement. Chadlington has denied recommending or assuring SG Recruitment and said he did not financially benefit from the contracts it won. Feldman, the peer who received the email, forwarded it to civil servants managing the VIP lane, noting that Sumner seemed like a decent person. Within five days, SG Recruitment was awarded the first contract, and a month later, it secured a second contract. Doubts arose when DHSC declared that £26m worth of the company’s products were not to be supplied. The DHSC has now confirmed that it is in dispute with SG Recruitment over one of the contracts. Details about the dispute and the specific issues with the supplied PPE have not been disclosed. Feldman’s spokesperson stated that he was an unpaid advisor and that contract decisions were made by officials, not him. The DHSC has refused to reveal information about the disputed contracts to maintain confidentiality and the potential for legal action, leaving taxpayers in the dark about government efforts to recover funds.
Conservatives: Government Faces Potential Loss of Millions in PPE Contract Dispute Linked to ‘VIP Lane’
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