Can the Covid Commissioner claw back the £674 million lost to Covid corruption? 

In the UK Budget in October 2024, Rachel Reeves, Chancellor of the Exchequer, announced that shortly she will appoint a Covid Corruption Commissioner to look into corruption throughout the COVID-19 pandemic. It was reported that Labour plan to claw back £674 million, lost to covid corruption. 
 
Tom Hayhoe, who has now been appointed has already set to work in his new position which will give him scope to investigate personal protective equipment (PPE) fraud carried out during the Covid-19 pandemic. He will be reviewing the £8.7bn of PPE bought during the Covid years that had to be written off by the Government.

The appointment of a Covid Corruption Commissioner in the UK could have significant implications for businesses. This role will be tasked with investigating allegations of fraud and corruption related to government contracts and financial support schemes implemented during the pandemic.   
 
Chris Guy, Head of Insurance Litigation at RLK Solicitors shares his thoughts:  

“While this is welcome news, it is not without complexity. Having acted for both PPE clients and company directors, I’ve seen first hand the challenges businesses faced during the pandemic. Many acted in good faith under immense pressure, navigating unclear guidance and rapidly changing rules. In litigation there are always two sides to the story. There is an insolvency angle to consider as well. A number of businesses, finding themselves under scrutiny, may attempt to dissolve to avoid personal liability. This creates challenges for enforcement and raises questions about how the Commissioner’s office will approach these scenarios. It’s essential that this initiative balances the need for accountability with an understanding of the unprecedented circumstances under which many decisions were made.” 

What Does This Mean for Businesses? 

Increased Scrutiny 

Businesses that received government contracts or financial support during the pandemic may face heightened scrutiny in relation to the support received. It is essential to maintain accurate and detailed records of all transactions and communications related to these funds. 

Potential Civil and Criminal Liability 

It’s been made clear that providing false or misleading information to the government could result in civil penalties, such as fines or disqualification from future government contracts. In serious cases, individuals could face criminal charges and potential jail sentences for fraud and corruption. 

Record-Keeping Requirements 

It’s vital that businesses ensure they have robust record-keeping systems in place. This includes maintaining accurate financial records, contracts, and correspondence related to any government support received. 

Cooperation with Investigations 

Where a business is contacted by the commissioner’s office, it is crucial to acknowledge the contact and cooperate fully with any investigations. Failing to do so may lead to further penalties or repercussions and result in serious long-term damage to the business. 

Seeking Legal Advice 

If your business is involved in any COVID-19 support schemes, it is strongly recommended to seek legal advice to ensure compliance with all relevant regulations. Our team here at RLK have been embedded in the Covid legal landscape since the beginning of the pandemic, so they are in an excellent position to give initial advice or help you with a more substantial query. 

The appointment of a Covid Corruption Commissioner underscores not just the importance of transparency, accountability, and ethical conduct in business, but also brings into sharp focus the intention and direction of travel of the government. By understanding the potential implications, staying informed and taking proactive steps to ensure compliance with regulations, businesses can mitigate risks and safeguard their reputation and secure their long-term success. 

We are closely monitoring developments and will provide updates as new information becomes available. If you would like to discuss your situation and take proactive steps, please give us a call on 0121 450 7800 or complete a website enquiry, and we will be in touch.