All over the world, medical staff have struggled to find enough PPE (personal protective equipment) to meet their needs and protect themselves in a time of pandemic. The problems have extended out and affected other users too, in care homes, local government, the police even.
That has led to some buying activities and processes that were far removed from the usual formal public procurement approaches. In the UK, we have seen huge orders placed with firms that normally would not have made it beyond the first basic company checks. Money was paid up-front in some cases, something else that would never happen in normal times.
We’ve been hesitant to call this Bad Buying given the emergency situation, although at time of writing, there is some evidence that the UK may now have over-ordered at the top of the market and paid more than perhaps we needed to. But let’s reserve judgment on that for now.
But as well as issues of competence, there have also been accusations of bias, nepotism and even fraud. Sometimes those are far-fetched; the fact that the CEO of a small firm supplying PPE once attended a Conservative Party charity dinner should not mean his firm can never be a government supplier again!
In some countries however, the issue has gone much further. Recently, the BBC reported on the arrest of the Zimbabwean Health Minister, Obadiah Moyo, as “the government came under pressure from the opposition and on social media over a scandal surrounding the procurement of coronavirus tests and equipment”.
Moyo faces charges related to a $20 million contract for PPE and other virus-related kit awarded to a firm registered in Hungary, allegedly made without going through the proper procurement processes. The company, Drax Consult, was only registered two months before the contract award, and the firm’s representative in Zimbabwe, Delish Nguwaya, has also been arrested. Africa News reported that “local journalists exposed how Moyo allegedly chose the company to sell medical supplies to the government at inflated prices that included face masks for $28 each”.
The President, Emmerson Mnangagwa, has made much of his anti-corruption drive but one of his sons was forced to issue a statement denying a link to the company after pictures emerged of Nguwaya with the president, his wife and sons at several events. Meanwhile doctors and nurses have been on strike demanding to be paid in US dollars as inflation is running at over 750% and incomes are virtually worthless in this struggling nation.
Coming back to the UK, the recent controversial government contract for market research (running focus groups) actually seems to me more dubious than most of the PPE buying activity. Giving a firm with “conflict of interest” type links to adviser Dominic Cummings and Cabinet Office Minister Michael Gove a contract for almost £1 million with no competition simply seems wrong. The “urgency” claim made in that case does not hold water really when a quick competition could have been run in days. But at the moment, the British people don’t seem inclined to riot in the streets or start arresting Ministers.
That’s because corruption in public life is not perceived as a big issue in the UK, unlike in Zimbabwe. That is probably a reasonable stance today; but my fear is whether the public would notice or care if matters started getting worse. The situation can decline rapidly, and once corruption becomes embedded, it is devilishly difficult to root out. Corruption is not the only cause of Zimbabwe’s decline in recent years, but it is certainly one driver of the economic woes the country has experienced. So, even in nice, apparently honest western democracies, we need to “stay alert”, as somebody told us recently …
(And of course there is much more about fraud and corruption in procurement in my new book, “Bad Buying – How Organizations Waste Billions Through Failures, Frauds and F*ck-ups”, available to pre-order now).