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US Firm Innova Medical Group Accused of Misuse of £4bn from UK Covid Contracts

The Digital Artisan

The Digital Artisan

— 1 min read
US Firm Innova Medical Group Accused of Misuse of £4bn from UK Covid Contracts

A California legal fight revolves around Innova Medical Group's huge profits made by selling Covid tests to the UK government during the early pandemic scramble. Innova's founder, Charles Huang, is claimed by ex-associates to have poorly used or relocated $1bn of these profits into luxurious lifestyle acquisition, which includes high-end aircraft, an $18m house in Los Angeles, and houses for alleged mistresses.

Huang's Lucrative Fortune

Huang's fortune, courtesy of the UK taxpayers, was transformed through 11 government contracts worth nearly £4.3bn granted for lateral flow tests (LFTs). The tests were manufactured in China and sold by Innova, an initially unknown firm whose value surged rapidly through these contracts. Innova was sole authorized supplier for rapid Covid tests in the UK for a minimum of four critical months, during which other companies were concurrently developing similar kits. Concerns were raised by the government spending watchdog about the lack of competition that posed 'risks to value for money'.

Push for Rapid Results

The prime agenda behind this rush was to reopen the economy swiftly by providing enough kits for testing up to 10 million people a day. The mass testing idea, named 'moonshot', enjoyed backing from the then Chancellor Rishi Sunak's team at the Treasury, but did come under scientific scepticism too. Through this ambitious plan, Innova managed to secure the vast majority of profits in question.

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