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The Supreme Court has ruled that the government’s use of so-called VIP sailors to award PPE contracts to two companies during the first wave of COVID is illegal.
The challenge was presented by the campaign groups, The Good Bill and EveryDoctor who argued that the bidding process granted illegal preferential treatment to those with political connections.
They have taken legal action over more than £340m in contracts awarded in 2020 to pest control firm PestFix and a £252m contract to hedge fund Ayanda Capital.
The ruling adds to the pressure on Boris Johnson and his government as it grapples with a series of degrading allegations – with Labor claiming there is a “cash for access” culture within the Conservative Party.
1:09 p.m. The situation is “totally untenable”
The Prime Minister’s personal reputation has taken a hit – Mr Johnson admitted in the Prime Minister’s Questions in the House of Commons that he attended the drinks party in Downing Street Park during the first shutdown, prompting opposition parties to resign.
Watch and follow PMQs live from midday on Sky News
The Supreme Court was told that the VIP lane for PPE contracts was reserved for referrals from MPs, ministers and senior officials, as the Department of Health – then under then-Minister of Health Matt Hancock – “prioritized suppliers including PestFix and Ayanda because of who they knew” and not what they can offer.”
The circuit contested the allegation, telling the court that it “wholeheartedly” dismissed the lawsuit against it and that the VIP lane made sense and resulted in “a significant number of credible offers” in an environment where PPE deals often failed within “minutes”.
Ms. Judge O’Farrell said it was illegal to give the two companies preferential treatment on the basis of being part of the VIP corridor.
However, it found that both offers from the two companies “justified the priority treatment in terms of their merits” and “highly likely” that they were awarded contracts even without the VIP pass.
The judge also found that “adequate financial care” had been taken in connection with the two sets of contracts.
The Ministry of Health has not yet commented on the ruling.
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