Suspected individuals involved in Covid-related fraudulent activities are being issued a final caution before potentially facing harsher penalties. As part of a government anti-fraud initiative, those who erroneously obtained funds during the pandemic are being given an opportunity to voluntarily return the money by the year’s end.
Approaching the December deadline, the Labour party has issued a stern warning, emphasizing the limited time remaining for debtors to settle their dues to the public coffers. A party spokesperson stressed the urgency, stating, “The voluntary repayment program concludes in December – the directive is clear: settle your debts promptly or risk intervention by the Covid fraud enforcement team.”
Labour has disclosed plans to dispatch warning letters to additional individuals suspected of making fraudulent claims in the upcoming week. Counter-fraud commissioner Tom Hayhoe has previously cautioned that individuals who inaccurately availed themselves of financial assistance under pandemic relief schemes and fail to meet the December cutoff will be pursued using enhanced enforcement measures.
Notable Covid-related programs within the voluntary repayment period encompass initiatives such as furlough support, bounce-back loans, relief grants, and the Eat Out to Help Out scheme.
According to Treasury reports, over £10 billion was lost to fraud, flawed contracts, and wastage during the pandemic under the Conservative government, with £1.5 billion subsequently recovered. Earlier this year, Mr. Hayhoe scrutinized £8.7 billion worth of Covid personal protective equipment (PPE), including gowns, masks, and visors, leading to their write-off from the government’s financial records. Department of Health accounts revealed in 2022 that £673 million worth of equipment was deemed unusable, and £750 million was squandered on items that expired before utilization.
In a significant development, the government emerged victorious in legal battles against PPE Medpro, a company associated with Baroness Michelle Mone. Ordered to reimburse over £121 million for breaching a PPE contract, the firm, entrusted with supplying 25 million surgical gowns during the pandemic, faced consequences.
During a recent court session, Mrs. Justice Cockerill summarized her ruling, affirming that PPE Medpro had violated the contract, rendering the gowns unsuitable for sterile use. The Department of Health and Social Care (DHSC) was deemed entitled to claim damages equivalent to the gown price. The firm, led by Baroness Mone’s husband, businessman Doug Barrowman, received government contracts under the previous Conservative administration, with both parties refuting any allegations of misconduct.