A year-long investigation by The British Wire has revealed a systemic failure in local council procurement, with over £1.2 billion in public contracts awarded to companies with no visible employees or physical offices.
Our analysis of over 50,000 freedom of information requests shows that 'paper companies' are increasingly being used to win lucrative service contracts, often with little to no oversight of the actual work being performed. In many cases, these entities are ultimately owned by offshore trusts.
"The lack of basic due diligence is staggering," said a forensic accountant who assisted with the investigation. "We are seeing public money being funneled into opaque structures with almost no accountability."
Several councils identified in the report have promised internal reviews, while the Local Government Association has called for more centralized support to help authorities vet potential contractors. The findings have been passed to the National Audit Office.
