LABOUR has raised “serious questions” after Matt Hancock’s shares in a family company which has NHS contracts were revealed.
A Number 10 spokesman said the Prime Minister still has full confidence in Mr Hancock after the UK Health Secretary declared in his register of interests last month that he now owns shares in Topwood Limited, which specialises in secure storage, shredding and scanning of documents.
The SNP has said the UK Government continues to “reek of corruption and cronyism” with the latest accusations coming following the Greensill scandal involving former prime minsiter David Cameron.
The Health Service Journal (HSJ) reported that the firm, in which his sister owns a larger portion of shares, won a place on a framework to provide services to the English NHS in 2019, as well as contracts with the NHS in Wales.
It also reported that the UK Health Secretary did not declare his connection to the company in the relevant register of interests, a claim which has been rejected by the UK Government.
A UK Government spokeswoman said Mr Hancock had acted “entirely properly in these circumstances” and that all declarations of interest have been made “in accordance with the ministerial code”.
READ MORE: Public owed 'frank explanation' of civil service lobbying arrangements
Asked if the Boris Johnson still had full confidence in Mr Hancock, a No 10 spokesman said: “Yes.”
Meanwhile, a Whitehall source said the Health Secretary has no active participation in running Topwood Limited and that neither he nor the Department of Health and Social Care (DHSC) were involved in awarding the contracts.
According to the Press Association, the source said Mr Hancock had discussed with the department’s top civil servant, the Permanent Secretary, that he was to be given the shares in the firm before accepting them.
At this point it was decided that, if any conflicts of interest did arise, they could be dealt with in line with the ministerial code, which sets out standards of conduct for ministers.
Mr Hancock has no responsibility for NHS Wales, which reportedly awarded the firm £300,000 worth of contracts, as health is a devolved matter and so dealt with by the Welsh Government.
It follows accusations of “cronyism” within Government by Labour, which is calling for a full inquiry into the Greensill Capital lobbying controversy.
READ MORE: Peer says 'Cameron's sleaze has crossed the border' and urges Greensill probe to cover Scotland
Shadow health minister Justin Madders said: “It is now clear this Conservative Government has been infected with widespread cronyism and is unable to identify where the line is drawn between personal and departmental interests.
“It’s one rule for them, another for everybody else.
“There are serious questions to answer from Matt Hancock and there needs to be a full inquiry and immediate publication of all documents relating to Topwood’s acceptance on to the framework contract in 2019.”
Labour deputy leader Angela Rayner said it “appears that the Health Secretary has breached the ministerial code” and demanded that he explain why he failed to declare that his sister is a director of the company.
The SNP’s deputy Westminster leader, Kirsten Oswald, said "the stench of corruption and cronyism is unavoidable".
She added: “First it was Greensill, then it was Covid contracts handed out to Tory donors, then it was the intervention from Boris Johnson at bin Salman’s request. Now we have the Health Secretary, yet again, handing out contracts like sweeties to friends - this time an NHS contract to his sister.
“The lack of transparency from the Health Secretary about his connections to Topwood Limited has rightfully left many questioning the legitimacy of the deal. We know that Tory cronyism is rife within Westminster therefore we demand clarity on this issue as a matter of urgency."
William Wragg, who is chairman of the Commons Public Administration and Constitutional Affairs Committee, said there are questions about whether the register was updated with details of Mr Hancock’s sister.
“I think his record, from his personal point of view, is up to date. I think the question is, was his register updated with that of his sibling?” the Conservative MP told Times Radio.
The committee announced on Thursday that it would be carrying out an inquiry into lobbying and business appointments issues that have come to light since the Greensill row.
A UK Government spokeswoman said: “Mr Hancock has acted entirely properly in these circumstances. All declarations of interest have been made in accordance with the ministerial code.
“Ministers have no involvement in the awarding of these contracts, and no conflict of interest arises.”
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