The jeweller, the middleman and the UK Government

by Good Law Project

The jeweller, the middleman and the UK Government

by Good Law Project
Good Law Project
Case Owner
Good Law Project uses the law to achieve change. We uphold democracy, protect the environment and ensure no one is left behind.
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on 19th November 2020
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Good Law Project
Case Owner
Good Law Project uses the law to achieve change. We uphold democracy, protect the environment and ensure no one is left behind.

Latest: June 29, 2022

Update on Saiger

Of all the unusual PPE deals we lifted the lid on, it was one of the strangest.

In the early Summer of 2020, Government awarded contracts worth over £250m to Saiger, a jeweller based in Florida,…

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Almost $50 million to one man. Not to supply PPE, because he didn’t. But to act as a middleman to sort the logistics for the jeweller from Florida whom the UK Government selected to supply £250 million worth of PPE.

The Florida jeweller is called Michael Saiger. And we can’t tell you the total he earned from those £250m+ of contracts - inexplicably the Government has blanked out the numbers - but he boasts of having secured “lucrative contracts with the government of the United Kingdom”.

And it doesn’t stop there.

The particular contract award we are challenging - entered into on 4 June for £70.5m of gowns (of which a little over $16m went to the middleman) - was for 10.2m gowns, which is approximately the entire number of gowns consumed by the NHS in England from the start of the pandemic until early November. And the price we paid the jeweller (£6.91) was £2.31 above the average price we paid others (£4.60) for those gowns during the pandemic, suggesting (if those others made a profit of 10%) a profit for the jeweller of £28m, before he paid the middleman.

“Lucrative” indeed. And this was only one of (at least) six contracts the jeweller won. All of which were published unlawfully late, by many, many months.

The cozy arrangement between Saiger and the middleman didn’t last long. According to documents in an ongoing court battle, the middleman stopped performing. And we lost out: there were delays in delivering the PPE to the NHS.

But our focus isn’t on the individuals who made staggering profits from the pandemic. If the Government is handing out free money, who could blame them for joining the queue? Our focus is on the Government which let them.

  • What were their reasons for deciding to award this huge contract to a jewellery specialist over other suppliers? 

  • Why did they pay over the odds for the PPE?

  • What steps did they take to satisfy themselves that Saiger was up to the job of delivering on such a huge order of PPE. Did they check the reliability of the subcontractor?

If their answers aren’t good enough (it’s hard to imagine how they could be), we will sue. 

Details: 
Good Law Project and EveryDoctor have instructed leading international firm Hausfeld & Co LLP and Jason Coppel QC and Patrick Halliday of 11KBW. Hausfeld will be paid nothing, unless the litigation succeeds. Jason and Patrick are working at heavily discounted rates.

10% of the funds raised will be a contribution to the general running costs of Good Law Project. If there is a surplus it will go to support and enable other litigation we bring.

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Update 3

Good Law Project

June 29, 2022

Update on Saiger

Of all the unusual PPE deals we lifted the lid on, it was one of the strangest.

In the early Summer of 2020, Government awarded contracts worth over £250m to Saiger, a jeweller based in Florida, for the supply of PPE. Saiger had previously admitted it had no experience in supplying PPE.

We then revealed that Saiger had paid $28m to a colourful ‘middleman’ to help with vaguely defined services in connection with the deal - and planned to pay $22m more. And that the PPE that was purchased was bought at an inflated price and included products that were not suitable for use.

It is a now-familiar story of profiteering, secrecy and waste.

In February 2021, the Court granted us permission to bring our judicial review, indicating that it agreed that there were proper questions to ask about the contract. We hoped the litigation would allow us to get to the bottom of what had happened. But the case was then put on hold by the Court while some of our other PPE cases, with similar legal arguments, were determined.

Although permission was granted in Saiger, more recent courts have shown a reluctance to look at pandemic procurement. In the circumstances, we have decided that it is not a good use of your money to proceed with this claim. We have agreed with Government not to continue with the claim, and to pay their reasonable costs up to their summary grounds of resistance. We are pleased to have broken this story, and that the Court gave us permission, but the change in temperature in the courts means we do not think it makes sense to take it forward.

Thank you for your support.

Update 2

Good Law Project

Feb. 8, 2021

More PPE that can’t be used by the NHS

We have now learned of another contract Government entered into with the jeweller Saiger, worth £36 million, for face masks. 

The contract was for FFP2 masks  – which protect the wearer, unlike the ones we all wear to the supermarket. But to protect the wearer they need to be adjustable - which means headstraps - and all of these masks have ‘earloops’. Earloop masks, Government has admitted in other cases, can’t be used in the NHS because they don’t give a proper fixing. We expect these £36m of masks will also be unusable.

But that’s not all. 

Saiger was awarded a contract worth £70.52m to buy 10.2m sterile surgical gowns. This is the contract we are challenging in court. Almost all of the gowns supplied under that £70m+ contract are unable to be used as such because they are wrapped in such a way that their sterile quality can’t be maintained.

At this stage, you might be wondering: shouldn’t a responsible Government just put up its hands and say “we got this wrong”? 

Instead it is spending, quite literally, millions in public funds trying to defend the indefensible. And what we want to know is, who is this spending for - is it in your interests? Or is it to avoid political embarrassment?

If you would like to support our attempts to deliver transparency, please donate to the legal challenge. 


Update 1

Good Law Project

Jan. 6, 2021

We’ve received a response

You will recall the strange case of the jeweller, the middleman and the £250million PPE contract. Just before Christmas, we received a response from Government to our pre-action letter in which we demanded answers over why it awarded such a huge contract to a jewellery specialist over other suppliers, why it paid over the odds and what checks were in place to ensure Saiger delivered. In line with our commitment to transparency, you can read this response here

We will update you on our next steps shortly. 


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