Labour calls for urgent clarity on government contracts handed to companies linked to tax havens

New analysis by Labour today reveals that 10 Covid-contracts, worth over £470 million in total, have been handed to companies either listed in tax havens or with a parent company listed in a tax haven.

The figures reveal PPE procured through companies listed everywhere from Malta to Mauritius, and Luxembourg to Dubai.

It also comes just weeks after the National Audit Office underlined how a lack of transparency – including missing documents, backdated contracts and information published months late – were serious flaws in the government’s procurement process.

Scrutiny of the government’s lack of transparency around its contracting processes has led to increasing evidence of cronyism and “chumocracy” including the confirmation that a “high profile” lane for contract access to those connected to Ministers and MPs fast tracked hundreds of contracts, and a catalogue of contracts handed to Tory friends and donors has totalled at least £1.5 billion.

Rachel Reeves, Shadow Cabinet Office Minister said:

“Taxpayers deserve to know their money is being handled with great care – and that any risks of its misuse through tax havens is carefully handled by this government.

“Despite evidence from the National Audit Office that taxpayer money was used to pay well over the odds for PPE, and that this government’s procurement process seriously lacks important transparency, we are seeing no real moves to increase clarity or trust.

“This government cannot continue to brush worrying patterns like this off. They must commit to cleaning up their contracts now and be far more open to restore public confidence.”

/Ends

Notes to Editors:

Thermoplastics

• One contract for £23.3 million
• The company itself is registered in Malta, and was also named in the Panama Papers: https://offshoreleaks.icij.org/nodes/55010897

Yearntree Limited

• Has two contracts, one for £4,350,000 and one for £10,680,000, so totalling £15.03million
• Supplier address is listed in Wales. But the person with significant control is company Deflecto LLC, address in Corporation Trust Centre, Corporate Trust Centre, 1209 Orange Street, Wilmington, Delaware, United States, 19801. https://find-and-update.company-information.service.gov.uk/company/01531357/persons-with-significant-control
• The State of Delaware has no state taxes, aka Delaware loophole.
• Open Corporates shows that its Directors/Officers are The Corporation Trust Company. https://opencorporates.com/companies/us_de/2844473
• The Corporation Trust Company at the same address as Deflecto LLC is listed in the Offshore Leaks Database.

https://offshoreleaks.icij.org/nodes/236918

Urathon Europe Limited

• 2 contracts totalling £74.7 million
• Supplier listed in Bedford, but ultimate controlling party incorporated in Jersey.

Unaudited Financial Statements for the Year ended 31 December 2019 for Urathon Europe Limited; URL here

Ayanda Capital Limited

• 1 contract with DHSC for £253m.Tussell, 27 July 2020,

• The ultimate controlling company is registered in Mauritius

Companies House: Ayanda Capital Financial Statements, 1 July – 31 December 2019

Bolle Brands (UK) Limited

• 1 contract with DHSC for £26m. Tussell, 19 June 2020.

• Bolle Capitals parent company is registered in Luxembourg.

Companies House: Bolle Brands, Accounts for the year ending 31 March 2019

Elite Creations (UK) Ltd.

• 1 contract with the DHSC worth £19million. Tussell, 21 July 2020.

• The parent company of Elite Creations (UK) is registered in Hong Kong.

Companies House: Elite Creations (UK), accounts year ending 31 March 2020,

Sumner Group Health Limited

• £50m for two contracts
• Address in Tussell is listed as ‘Leigh Rd, Eastleigh’ – which is correct for the director - https://find-and-update.company-information.service.gov.uk/officers/Z391rOXiEpZgeIqlJwY_B5wPu8I/appointments
• But the person with significant control is: Gulf Healthcare Holdings, R.G. Hodge Plaza, Wickhams Cay 1, Road Town, Tortolla, Virgin Islands, British - https://find-and-update.company-information.service.gov.uk/company/09767522/persons-with-significant-control
• And in this notice to withdraw from the AQUIS stock exchange posted to the SEC in August this year it listed an address in Dubai - https://sec.report/nsm/Sumner-Group-Health-L-T-D/RNS/3683360

Survitec Group Limited

• £30.5m
• Address listed as Finsbury Square, but person with significant control is in the Caymans: Survitec Holdings 1 Limited, 190 Elgin Avenue, George Town, Gran Cayman, Cayman Islands, KY1 9005 - https://find-and-update.company-information.service.gov.uk/company/00905173/persons-with-significant-control

Details of what constitutes a tax haven can be found through the Financial Secrecy Index.