PPE Medpro fails to Meet Deadline to Repay £146 Million for Substandard COVID Gowns
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A company linked to former Conservative peer Michelle Mone has failed to repay any of the £146 million ordered by a high court judgment for supplying unusable personal protective equipment (PPE) during the COVID-19 pandemic.The judgment underscores growing scrutiny over lucrative government contracts awarded during the height of the crisis.
High Court Ruling and Missed Deadline
Mrs. Justice Cockerill ruled that PPE Medpro was required to return £122 million – plus accrued interest – by 4:00 PM on October 15th. This sum represents payments received from the Department of Health and Social Care (DHSC) for 25 million sterile surgical gowns, a contract initially awarded in June 2020. Reacting shortly after the deadline passed, Health Secretary Wes Streeting confirmed that PPE Medpro had failed to meet the obligation and that the government would actively pursue recovery of the funds.
“At a time of national crisis, PPE Medpro sold the previous government substandard kit and pocketed taxpayers’ hard-earned cash,” Streeting stated. “PPE Medpro has failed to meet the deadline to pay – they still owe us over £145 million, with interest now accruing daily. We will pursue PPE Medpro with everything we’ve got to get these funds back where they belong – in our NHS.”
Mounting Debt and Administrative Challenges
The DHSC reports that interest on the original £122 million has now reached £23.7 million, bringing the total owed to almost £146 million. Interest will continue to accumulate at an annual rate of 8%. However, recovering these funds presents a important challenge, as PPE Medpro was placed into governance on September 30th – just one day before the court’s judgment. This move raises questions about the company’s remaining assets and its ability to satisfy the debt.
A spokesperson for Michelle Mone’s husband, Doug Barrowman, and Mone herself indicated that “consortium partners of PPE Medpro” – referring to three intermediary companies involved in the supply chain – are “prepared to enter into a dialog with the administrators of the company to discuss a possible settlement with the government.” However, Labor officials have indicated they are prioritizing full repayment and have not engaged in discussions regarding a settlement.
The “VIP Lane” and Contract Award
The DHSC initially awarded PPE Medpro a £122 million contract for gowns and a separate £80.85 million contract for face masks, totaling £203 million. These contracts were awarded after Mone initially contacted then-Cabinet Office minister Michael Gove in May 2020. Critically,the contracts were processed through the so-called “VIP lane,” a fast-track system established by Boris Johnson’s Conservative government during the pandemic that prioritized bids from individuals with political connections. Mone was appointed to the House of Lords by David Cameron in 2015.
Years of Denials and Recent Admissions
For years, both mone and Barrowman denied any involvement with PPE Medpro through their legal representatives. However, in November 2022, reporting by The Guardian revealed that Barrowman had received at least £65 million in profits from the company, subsequently transferring £29 million to a trust established for the benefit of Mone and her three children.
In December 2023, Mone admitted in a BBC interview that she and Barrowman had previously lied about their involvement. Barrowman acknowledged receiving over £60 million and confirmed the transfer of funds to the trust, stating that his children were also beneficiaries.
The ongoing situation highlights concerns about transparency and accountability in the awarding of government contracts during the pandemic and raises questions about the ultimate recovery of taxpayer funds.
