Michelle Mone-linked firm fails to pay back £122m over PPE breach

A company linked to Baroness Michelle Mone has failed to meet a £122 million repayment deadline for breaching its Covid-19 personal protective equipment (PPE) contract.

Department of Health and Social Care (DHSC) We won a lawsuit against PPE Medpro earlier this monthA consortium led by Lady Mone’s husband, Doug Barrowman, filed a lawsuit over allegations that the PPE did not comply with relevant health standards.

Supreme Court judge ruled Some of the gowns the company supplied were not “sterile”.

Health and Social Care Minister Wes Streeting said the government would “pursue PPE Medpro with everything we can to recover these funds” after the company failed to pay damages costs by 16:00 GMT on Wednesday.

He said: “At a time of national crisis, PPE Medpro sold the previous government’s substandard kit and pocketed taxpayers’ hard-earned money.

“PPE Medpro has failed to meet its payment deadline; it still owes us over £145 million and interest is now accruing on a daily basis.”

The firm was ordered to pay £23.6 million in interest, meaning the total debt was £145.6 million.

Interest will accrue on this amount from Thursday at a rate of 8% per annum until it is paid in full, according to DHSC.

PPE Medpro went into administration on 30 September.

A government contract for the supply of PPE was signed in 2020 after being recommended by Baroness Mone.

However, after ordering 25 million sterile gowns from PPE Medpro, the government took legal action through the High Court in 2022, claiming the gowns did not comply with the agreed contract.

PPE Medpro argued that it complied with the contract and that the gowns were sterile.

Since the court ruling, Baroness Mone has faced cross-party calls to strip her of her peerage title.

However, spouses can only be removed by an act of Parliament.