Grenfell companies still awarded multimillion-pound public contracts, analysis reveals
Survivors of the Grenfell Tower blaze have urged the government to halt public contracts with firms involved in the tragedy, after it came to light that several are still benefiting from multimillion-pound agreements. New analysis discovered a minimum of 87 contracts within the public sector in the government’s own database that list companies criticized in the phase 2 report regarding the Grenfell fire, released in September 2024, although some contracts might have since lapsed. The Labour MP Joe Powell, who conducted the analysis, stated: “Grenfell bereaved, survivors and our community continue to pursue justice eight and a half years after this completely preventable disaster, and it’s remarkable that public funds are still being allocated to companies cited in the public inquiry.”He insisted the government should promptly review the outstanding public contracts with these firms and at the very least offer guidance under the Procurement Act 2023 urging against the use of suppliers due to historical misconduct.Seventy-two individuals lost their lives and over 70 sustained injuries in the inferno that erupted in the west London tower on 14 June 2017. It marked the UK’s most devastating residential fire since the Blitz during World War II.At the time of the report, Keir Starmer asserted he would prohibit the firms involved from any public contracts. However, the government later rescinded plans for a blanket ban, citing advice from the Crown Prosecution Service that pursuing such a course could jeopardize criminal inquiries.Powell emphasized: “I call on all public entities to perform a thorough audit of their contracts, including those of subcontractors and supply chains, and publicly disclose what they find. It’s encouraging that the government has empowered new regulations to exclude companies based on professional misconduct, and now is the ideal moment for procurement departments to act.”The primary survivors’ organization, Grenfell United, expressed that it would be a significant injustice to see any companies highlighted in the report continue to receive public funding. “While ongoing criminal investigations restrict formal penalties, there is nothing preventing the government from taking a strong ethical position,” the group asserted in a statement.“The Procurement Act provides authorities with the means to weigh integrity and risk, hence there is no justification for inaction. At the bare minimum, guidance should ensure that firms flagged for severe malfeasance undergo rigorous scrutiny before any further public money is allocated.“Observing the same companies carry on as if nothing occurred serves as a painful reminder of the absence of accountability. Justice has faced delays; it must not be overlooked. Public organizations should prioritize people’s safety and ensure Grenfell is never repeated.”Two major companies associated with the disaster – Saint-Gobain and Rydon Maintenance – are reflected in the public contracts database with agreements valued in millions across the public sector.Rydon, the principal contractor for the refurbishment, faced extensive criticism. The inquiry revealed that the company “gave insufficient attention to fire safety” and did not ensure that subcontractors and consultants fully grasped their responsibilities.Rydon’s team was determined to be lacking in experience and depended on subcontractors to identify mistakes. However, the company also shows up in multiple public contracts, including facilities management services for NHS trusts amounting to millions. Confirmed contracts include £6.6m with Oxleas NHS foundation trust and £4.3m with Avon and Wiltshire mental health partnerships NHS trust. The trusts did not reply to requests for comment.In total, the database indicated 14 contracts with Rydon with unspecified end dates worth over £5.5bn – although some of these contracts may have since ended. Rydon did not respond to inquiries for comment.Powell has reached out to the NHS trusts involved, as well as Scottish Water, requesting that they reassess their contracts. In his correspondence to Penny Dash, the chair of NHS North West London, Powell stated that the trust ought to reevaluate its contract with Rydon.“It is crucial that while we await the conclusion of the criminal justice process, those companies mentioned in the inquiry do not profit from public resources,” he expressed.Another implicated company, Celotex, previously owned by Saint-Gobain, was shown to have promoted its RS5000 insulation as safe for high-rise buildings, even though it was known to be flammable – and it constituted 95% of the insulation used on the tower. The company claimed it was meant for use with non-combustible cladding.During the inquiry, a former employee of Celotex testified that they had been instructed to “lie for financial benefit” and characterized the company’s conduct as “entirely unethical”.The procurement records indicate that Saint-Gobain holds a £17.6m contract with Scottish Water, valid until 2029. Although it is no longer the parent company of Celotex, it was at the time of the fire. Scottish Water opted not to comment.A representative for Saint-Gobain Construction Products UK indicated it consists of “a wide range of businesses, including Saint-Gobain PAM, a manufacturer of high-performance ductile iron pipes for infrastructure and water projects.“These businesses were not associated with the Grenfell Tower renovation nor with Celotex Limited, which ceased trading in December 2015. They were not mentioned during the inquiry or ensuing government announcements, and their integrity has not been questioned.“Saint-Gobain businesses have been operational in the UK since 1846. They are vital partners in various UK construction and infrastructure projects, significant employers, and contributors to the economic areas and local communities in which they function.”The Procurement Act 2023 grants local governments, NHS entities, and other public organizations the authority to exclude suppliers based on poor previous performance, including violations of health and safety, labor, or environmental statutes, or professional misconduct.Powell remarked that the new powers should be utilized more proactively to safeguard public safety and funds, rather than relying solely on voluntary caution on the part of contracting authorities.The Cabinet Office is believed to feel it lacks legal grounds to provide guidance on suppliers under the act. A government spokesperson stated: “We will always remember the 72 lives lost at Grenfell. While it is the responsibility of the broader public sector for its own procurement choices, the government reached out to all organizations named in Sir Martin Moore-Bick’s report and initiated investigations into seven.“These investigations have been put on hold to prevent any unintended prejudice to criminal proceedings – but this does not hinder us from reinitiating them, or starting new inquiries when suitable in the future.”
Published: 2025-12-29 06:46:00
source: www.theguardian.com
