KPMG is being paid £8 million to promote Peter Thiel’s tech in NHS hospitals – but we’re being forced to fight for information about this public contract.
It’s been a good week for Palantir. The controversial spy-tech company, co-founded by Trump donor Peter Thiel, looks set to secure even more UK government work after the defence secretary pledged to expand the role of AI in the military.
Palantir already holds a £330 million NHS data contract. But as Democracy for Sale revealed last week, most hospitals in England are not using the software, with many complaining that it simply isn’t up to scratch.
To encourage hospitals to take it up, the government signed an £8 million deal with consultancy giant KPMG to “promote the adoption” of Palantir’s tech in the NHS.
We wanted to know more about how this money is being spent. How exactly has KPMG been promoting Palantir’s software to hospitals? And has it worked?
So, we submitted a Freedom of Information (FOI) request to the Department of Health and Social Care (DHSC), asking for reports produced by KPMG under its contract, as well as briefings prepared for Health Secretary Wes Streeting, who publicly supported the deal.
The government’s response? Silence. They’re refusing to release the information—so now we’re fighting for transparency.
Sue Hawley, executive director of Spotlight on Corruption, told us the government’s “impulse to secrecy around public money and public contracts” is “deeply concerning.”
“KPMG’s contract raises a real question: if [Palantir’s] software is so good, why does the government need to give £8 million of taxpayers’ money to a management consultancy to encourage NHS hospitals to use it?,” she added.
Cabinet Office minister Michael Gove referred Tory donor firms to Covid ‘VIP lane’
Exclusive: Judge slams “most unsatisfactory” Cabinet Office and orders release of names of ‘VIP’ firms to Democracy for Sale reporter – after *four year* wait.
The government has lost a long-running legal battle to block the release of information on companies referred to the lucrative ‘VIP lane’ for Covid contracts.
Firms linked to Conservative donors and party figures received over a billion pounds in PPE contracts during the pandemic after referrals from Tory ministers, MPs, and officials.
Companies in the VIP lane were ten times more likely to be given contracts, yet over half of the PPE they supplied was unusable.
In February 2021, Democracy for Sale reporter Jenna Corderoy filed a Freedom of Information (FOI) request seeking the names of all companies referred to the VIP lane and those who recommended them, including MPs and members of the House of Lords.
Months later, a court ruled the VIP lane was “unlawful,” and the government released the names of companies that secured contracts.
However, the identities of unsuccessful bidders and their political referrers remained secret, keeping the public in the dark about how politicians had helped politically-connected VIPs to seek public contracts.
For four years, the government resisted full disclosure, arguing it should not have to reveal how the VIP lane operated.
Corderoy took the case all the way to an information tribunal, where Judge Foss has now ruled that the government has 35 days to give Democracy for Sale the names of all unsuccessful companies.
Boris Johnson confirms his thumbs up from Rupert Murdoch
Our investigation reveals secretive funding sources for think tanks that boast of influencing the government
Influential right-wing UK think tanks with close access to ministers have received millions in ‘dark money’ donations from the US, openDemocracy can reveal.
The TaxPayers’ Alliance, the Institute of Economic Affairs (IEA), Policy Exchange, the Adam Smith Institute and the Legatum Institute have raised $9m from American donors since 2012. Of this, at least $6m has been channelled to the UK, according to tax returns filed with US authorities – representing 11% of the think tanks’ total UK receipts, with the figure reaching 23% for the Adam Smith Institute.
In that time, all five have steadily increased their connections in the heart of government. Between them, they have secured more than 100 meetings with ministers and more than a dozen of their former staff have joined Boris Johnson’s government as special advisers.
Representatives from right-wing think tanks – many of whom are headquartered at 55 Tufton Street in central London – frequently appear in British media and have been credited with pushing the Tories further to the right on Brexit and the economy.
As openDemocracy revealed yesterday, ExxonMobil gave Policy Exchange $30,000 in 2017. The think tank went on to recommend the creation of a new anti-protest law targeting the likes of Extinction Rebellion, which became the Police, Crime, Sentencing and Courts Act 2022.
None of these think tanks disclose their UK donors. With the exception of the Adam Smith Institute, none provide any information about the identity of donors to their US fundraising arms.
But an investigation by openDemocracy has identified dozens of the groups’ US funders by analysing more than 100 publicly available tax filings.
The Scottish National Party MP Alyn Smith said that the findings showed that the UK’s lobbying laws were not tough enough.
“He who pays the piper calls the tune,” he told openDemocracy. “We urgently need to rewrite the laws governing this sort of sock puppet funding so that we can see who speaks for who.”
Last month, Smith asked an IEA representative who funded the think tank on BBC’s flagship question time show.
Among the US-organisations who have donated to UK think tanks are oil companies and several of the top funders of climate change denial in the US.
The think tanks’ US arms received $5.4m from 18 donors who have also separately donated a combined $584m towards a vast network of organisations promoting climate denial in the US between 2003 to 2018, according to research from climate scientists.
The John Templeton Foundation, founded by the late billionaire American-British investor, has donated almost $2m to the US arms of the Adam Smith Institute and the IEA. Researchers claim that the John Templeton Foundation has a “history of funding what could be seen as anti-science activities and groups (particularly concerning climate-change and stem-cell research)”.
The National Philanthropic Trust, a multi-billion-dollar fund that does not disclose its own donors, has given almost $2m to the IEA, Policy Exchange, TaxPayers’ Alliance and the Legatum Institute’s US fundraisers. The trust has donated $22m to climate denial organisations, one of which described it as a “vehicle” for funnelling anonymous donations from the fossil fuel industry.
The Sarah Scaife Foundation, founded by the billionaire heir to an oil and banking fortune, has given $350,000 to the Adam Smith Institute and the Legatum Institute. The foundation is one of the biggest funders of climate denial in the US, contributing more than $120m to 50 organisations promoting climate denial since 2012. Last month, openDemocracy revealed that the foundation, which has $30m in shares in fossil fuel companies, gave $210,525 to a UK climate sceptic group.
Policy Exchange, the influential conservative think tank, published a report in 2019 – two years after taking money from ExxonMobil – claiming that Extinction Rebellion were “extremists” and calling for the government to introduce new laws to crack down on the climate protest group.
New anti-protest laws passed under the Police, Crime, Sentencing and Courts Act last month appear to have been directly inspired by the report. The Home Office did not deny that it considered the recommendations when approached for comment.
The American Friends of the IEA also received a $50,000 donation from ExxonMobil in 2004, while the main UK branch of the IEA has received donations from BP every year since 1967.
The Legatum Institute has received $154,000 from the Charles Koch Foundation in 2018 and 2019. The foundation was set up by the American billionaire co-owner of Koch Industries, one the biggest fossil fuel companies in the US.
Andy Rowell, co-author of “A Quiet Word: Lobbying, Crony Capitalism and Broken Politics in Britain”, told openDemocracy: “For years, there have been calls for think tanks, who are so often joined at the hip with government, to be transparent and disclose who funds them.
“The fact that so much dark money is behind these groups, and much of it is linked to climate denial groups, is a political scandal that can’t be allowed to continue, especially given our climate emergency.”
In all, US donors account for more than a tenth of the overall income of the IEA, Policy Exchange, Adam Smith Institute and TaxPayers’ Alliance.
Anti-green lobbying
While all the think tanks say they do not dispute the science on climate change, many are campaigning to increase the UK’s dependency on fossil fuels and deregulate energy markets in response to the cost of living crisis.
The TaxPayers’ Alliance, Adam Smith Institute and the IEA have all called for the UK’s ban on fracking to be overturned. In April, the government agreed to review the moratorium it had imposed in 2019, when scientists deemed fracking unsafe. The U-turn came after concerted pressure from anti-net zero Tory MPs and lobby groups.
The IEA has also called for the government to approve the opening of a new coal mine in Cumbria, while the TaxPayers’ Alliance has called for the government to scrap green energy bill levies. Tory MP Ben Bradley has cited the TaxPayers’ Alliance in Parliament while claiming that levies will exacerbate the cost of living crisis.
Environmental groups say cutting the levies, which are used to invest in energy efficiency measures and renewable energy, would be self-defeating and merely delay the UK’s longer-term transition away from fossil fuels.
Johnson’s think tank cabinet
Right-wing think tanks like the IEA have come to play an increasingly influential role in shaping British politics, despite the lack of transparency around their funding.
The IEA has boasted that 14 members of Boris Johnson’s cabinet – including the home secretary Priti Patel, the foreign secretary Liz Truss and the business secretary Kwasi Kwarteng, are “alumni of IEA initiatives”.
Ministers have recorded 26 meetings with the think tank since 2012, but there may be additional, undeclared private meetings. In 2020, Truss, who was then the secretary of state for trade, failed to declare two meetings with the IEA, arguing that they were made in a personal capacity.
Mark Littlewood, the director of the IEA, has boasted of securing access to ministers and MPs for his corporate clients, including BP, telling an undercover reporter in 2018 that he was in “the Brexit influencing game”.
Others like Policy Exchange, which was co-founded by the ‘levelling up’ secretary Michael Gove, can claim to have had some of their policy ideas taken up by the government.
Gove’s recently announced plan to allow residents to vote on whether to allow developments on their street was first proposed by Policy Exchange last year. Campaigners said the plan will not help increase the supply of affordable housing.
Several of the think tanks were accused by a whistleblower of coordinating with one another to advocate for a hard break from the European Union following the referendum vote.
Shamir Sanni, a former pro-Brexit campaigner who worked for TaxPayers’ Alliance before going public with his claims, alleged that the organisation regularly met with the IEA, the Adam Smith Institute to agree on a common line on issues relating to Brexit.
Sanni subsequently won an unfair dismissal case against the TaxPayers’ Alliance. The organisations he identified have all denied they act as lobbyists or coordinate.
