Covid-19 and the benefits to the private sector

There is no doubt that big change generates big potential. During the crash of 2007/2008, individuals capitalised by betting against the market, a process known as “shorting”. The fact that individuals can make such wealth whilst the majority of people are so adversely effected by changes in the market is a hard one to swallow. But wealth buys serious advantages.

Covid is a catastrophe. In the face of the global pandemic we are seeing a recession much like of 07/08 private sector companies are benefiting from the struggle. First of all, track and trace (a scheme squelching through a quagmire of controversy) was awarded to a firm that has close links with the Conservative Party. The job was not put out for tender but was instead rushed through by the standing government. The Guardian rightly highlighted this topic in their “Covid-19 investigations” piece: “Firms given &1bn of state contracts without tender in Covid-19 crisis” (15/05/2020).

“Official data analysed by the Guardian shows state bodies have awarded at least 177 contracts worth £1.1bn to commercial firms in response to the Covid-19 pandemic.

Of those, 115 contracts – with a total value of just over £1bn – were awarded under the fast-track rules bypassing competitive tenders. They include two contracts worth more than £200m, both awarded by Whitehall departments.”

War is lucrative and so is any catastrophe. Among the companies given tender were Deloitte, Ernst & Young and PricewaterhouseCoopers. Deloitte has been under the intense scrutiny of publication Private Eye for some time. Deloitte has overseen the procurement of 50m unusable masks despite Deloitte’s role throughout the Covid-19 crisis being: “supplier monitoring, analysis and due diligence”. Due diligence is definitely not a strength for this organisation considering the firm was “fined for failing to spot fraud” and it has also been found guilty of ‘”serious and serial failures”‘ in its work at IT company Autonomy.

Another problem that has been highlighted regarding the government’s fast-tracking of contracts to private parties is the grabbing of information. The grabbing of information happens when companies take user data from mobile phones and devices and sells that information to 3rd party interests. Last year data mining was more lucrative that the oil industry. The money to be made from advertisers trying to peddle products and services straight onto our feeds and through our apps is staggering and Covid-19 has given data-mining free reign over information that we once wanted to keep private.

Private firms have always been circling the public sector like vultures waiting for an accident or a hiccup. What is so troubling is that the chumminess of Conservative MPs with so many higher-ups in the private sector has blurred. David Cameron’s contemporary, Dido Harding (previously chair of TalkTalk) has been ushered in to run the track and trace initiative. Her husband is Tory MP and Tory Minister John Penrose. In a Huffpost exclusive, Dido Harding’s suitability for the role is questioned.

“Critics point to her record at TalkTalk where the company suffered a major data breach and was given a record £400,000 fine for failing to protect customers details from a hack attack.”

“Shadow health minister Alex Norris said: “Nurses on the frontline using food banks or families denied the opportunity to see grandparents because of local lockdowns will be appalled at revelations this Tory peer has pocketed thousands of pounds worth of taxpayers cash.”

The Huffpost emphasises the close link between Tories and the interests of their friends and donors. People not fit for purpose are afforded the helm of projects and yet, despite questionable results (i.e. Dido Harding’s recent failure on Track and Trace which sent some people up to a hundred miles from their homes to get treatment). Surely such an important task should be handed to a group already working within the public sector who better know the health services available?

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