A company associated with Baroness Mone is facing a substantial repayment to the government exceeding £121 million following a breach of a Covid PPE contract. PPE Medpro, responsible for delivering 25 million surgical gowns during the pandemic, was taken to court by the Department of Health and Social Care (DHSC) for allegedly supplying substandard goods. A High Court judge has determined that the company violated the contract and has given them a two-week deadline to repay nearly £122 million. The firm, led by businessman Doug Barrowman, who is married to Baroness Mone, secured government contracts under the previous Conservative government. Allegations arose after the baroness, currently on leave from the House of Lords, recommended the company to ministers. Both parties have denied any wrongdoing.
Chancellor Rachel Reeves expressed determination to reclaim the funds, emphasizing that the money will be reinvested in essential sectors like schools, the NHS, and communities. Legal representatives for the government argued that the company should cover the £121 million contract costs in addition to expenses for storing and transporting the items, totaling over £8.6 million. Conversely, the company’s lawyers contended that PPE Medpro was unfairly targeted and criticized the government for regretting the deal, asserting that the gowns became defective due to improper storage conditions post-delivery to DHSC.
In response, PPE Medpro initiated administrative proceedings by filing a notice of appointing an administrator. Baroness Mone lamented being portrayed negatively in the PPE scandal and claimed that the DHSC rejected lucrative settlement offers. The court ruling, delivered by Mrs. Justice Cockerill, deemed the contract breach by PPE Medpro due to the gowns’ inability to meet sterility standards. The judge ordered the company to repay the sum by 4 pm on October 15.
Mr. Barrowman criticized the court’s decision as a miscarriage of justice in a written statement, challenging the judgment’s alignment with the trial evidence. DHSC disclosed that they paid PPE Medpro over £121 million in the summer of 2020, only to reject the gowns by December that year. The department insisted on a refund, citing non-sterile gowns still in storage. Legal documents revealed that initial discussions with Medpro were facilitated through Baroness Mone, with the contract negotiations overseen by one of the company’s directors.
During the trial, DHSC’s legal representative highlighted that the majority of gowns failed sterility tests, justifying the rejection and claiming damages for the full contract price and storage costs. PPE Medpro’s legal counsel countered by asserting that the government excessively ordered gowns and sought ways to escape the contract, alleging unfair treatment and blaming post-delivery storage conditions for the gown contamination.
Baroness Mone accused the DHSC of unfairly targeting her and her husband, attributing the situation to a diversion from PPE procurement mismanagement. She maintained that the case transcended gowns and finances, with rejected settlement offers signaling the government’s intent to pursue litigation despite the company’s financial constraints.