Stephen Komarnyckyj investigates the Brexit effect and how Britain bypassed normal calls for competition in its extraordinary purchasing binge

Share this article

The Department of Health and Social Care has awarded an £825,000 contract for personal protective equipment (PPE) for healthcare workers to a company that apparently has no cash.

The firm, MGP Advisory Limited, has faced being struck off the Companies House register for failing to file its paperwork on three occasions since it was founded in 2017.

The firm’s last accounts, submitted in December 2019, describe it as a “dormant company” and state that its share capital is £10. The company had no funds in its bank accounts and was about to be struck off the register when it was awarded the Government contract on 1 May 2020. The contract end date is also 1 May 2020, presumably because it covered the purchase and delivery of a single batch of equipment. 

It seems as if MGP Advisory Limited is really a vehicle for its founder and director, Michael Garrick Pearce, who – according to his LinkedIn profile – is a fashion and luxury industry specialist who launched the UGG boots in the UK. He has extensive contacts in the Middle East and Far East.

When contacted by Byline Times, he responded by referring to a link to the award notice. 

The NHS Counter Fraud Authority stresses the need to undertake due diligence on companies before they are contracted. The Companies House page for MGP Advisory Limited informs the reader that its accounts are overdue.

MGP Advisory Limited is not the only firm with an interesting background to have recently won a PPE contract from the Government.

Jolyon Maugham QC, as reported by Yorkshire Bylines, has found evidence of two companies having received PPE contracts from the Government despite having no track record in this area.


The Brexit Effect

In the early stages of the Coronavirus pandemic, the Government was offered the opportunity to participate in an EU scheme to procure PPE. The EU has published four calls for PPE and its strength as a procurer means it can obtain supplies at a good price. The UK chose not to join the scheme although it had the right to do so until 31 December 2020. 

Even if it did not participate in the EU scheme, the UK would ordinarily have published an open call for bids to provide PPE in the Official Journal of the European Union. However, under EU directives, when there is an ‘extreme urgency’ to buy goods or services, the Government does not have to open up a contract to competition. It can instead approach companies directly. 

Dozens of Government agencies, including the Department of Health and Social Care and local NHS bodies, have therefore approached firms to provide services, bypassing the EU’s tendering process – in some cases without a ‘call for competition’, meaning that only one firm was approached. 

Many of the companies have a track record in providing PPE, but some do not. While we do not know why these companies were chosen, this approach to procuring large supplies of PPE is highly questionable. In giving vast amounts of cash to the purchasing of PPE without competition, firms have likely been handpicked by the Government.

The whole process suggests a cavalier attitude to procurement rules, which are ultimately in place to protect the public against fraud and ensure that their money is spent properly and effectively.

Byline Times contacted the Department of Health and Social Care for comment but did not receive a response.


OUR JOURNALISM RELIES ON YOU

Byline Times is funded by its subscribers. Receive our monthly print edition and help to support fearless, independent journalism.

New to Byline Times? Find out more about us

SUBSCRIBE TO THE PRINT EDITION

A new type of newspaper – independent, fearless, outside the system. Fund a better media.

Don’t miss a story! Sign up to our newsletter (and get a free edition posted to you)

Our leading investigations include: empire & the culture warBrexit, crony contractsRussian interferencethe Coronavirus pandemicdemocracy in danger, and the crisis in British journalism. We also introduce new voices of colour in Our Lives Matter.

More stories filed under Cronyism and Corruption

The Second-Jobbing MPs Earning Millions Outside Parliament

, 20 March 2023
A Byline Times investigation reveals 20 MPs working the equivalent of at least one day a week on second jobs

No Shades of Gray: Privileges Committee Report Exposes Boris Johnson’s ‘Partygate’ Lies

, 3 March 2023
A damning new report blows apart the former Prime Minister's claims to have been 'stitched-up' over the scandal of lockdown parties in Downing Street, reports Adam Bienkov

EXCLUSIVE REVEALED: MPs’ Gifts from Gulf States Accused of Human Rights Abuses

, 14 February 2023
Analysis by this newspaper reveals Conservative MPs make up the majority of those in receipt – as post-Brexit trading opportunities appear to be trumping ethical concerns for the Government

More stories filed under Reportage

EXCLUSIVE REVEALED: Leaked Memos Lay Bare Sunak’s War with Johnson over PM Gongs

, 1 April 2023
Correspondence seen by Byline Times reveals all manner of advisors, relatives, friends and animals being lined up for honours by the former Prime Minister

EXCLUSIVE Watchdog ‘Examining’ BBC Chairman’s Charity over Donations to Right-Wing Political Groups

, 31 March 2023
Richard Sharp pumped money into a group that funds causes like the TaxPayers' Alliance, Eurosceptics and the BBC-bashing News-Watch. Now the Charity Commission is "engaging" with his foundation

UK’s Brexit Trade Deal with Malaysia has Potential to Flood Market with Dirty Palm Oil

, 31 March 2023
In a weakened position due to Brexit, the UK has accepted Malaysia’s demands to reduce import tariffs on palm oil from the current 12% to 0%

More from the Byline Family