The government is suing a protective gear company associated with Michelle Mone for approximately £134 million, but the company only has assets totaling £666,000 remaining. PPE Medpro Ltd’s financial records reveal that it has spent £4.3 million on legal defense against the government’s claim in the High Court. This situation raises concerns that even if the government succeeds in its case regarding allegedly faulty PPE, there may be minimal or no funds recovered for taxpayers.
Established by a close colleague of Baroness Mone and her spouse Doug Barrowman during the early stages of the pandemic, the company swiftly secured over £200 million in Covid contracts for surgical gowns and facemasks through a special government procurement channel. Although Baroness Mone initially denied any association with PPE Medpro, it later came to light that she and her husband profited £65 million from the company. Despite their denial of any misconduct, assets valued at over £100 million, including properties and a private jet, are linked to them, some of which have been frozen or sold recently due to court actions.
The Department of Health initiated legal proceedings in 2022, alleging that 25 million gowns supplied by PPE Medpro were unfit for use in the NHS. In response, PPE Medpro refuted the accusations, suggesting that any contamination occurred during transportation. The case outcome is pending as of now.
Recent financial reports for the company indicate investments worth £541,000 and outstanding debts of £1.2 million, resulting in net assets of £666,025 after deducting liabilities. These figures reflect a decrease from the previous year when net assets were £2.1 million. PPE Medpro has chosen not to provide any comments on the matter.
The company’s accounts reference the Department of Health’s claim for £133,577,920.20 plus interest, noting that PPE Medpro disputes the claim and has utilized around £4.2 million from reserves for legal defense. Further costs incurred post the balance sheet date are estimated to be around £100,000.
A consortium led by Mr. Barrowman backed PPE Medpro, which secured significant contracts following lobbying efforts by Baroness Mone, a former Tory peer. Investigations into the deals by the National Crime Agency resulted in interviews with Baroness Mone and her husband under caution, along with raids on their properties in London and the Isle of Man. The couple faces allegations of bribery and conspiracy to defraud, which they vehemently deny.
Baroness Mone, the founder of Ultimo lingerie brand, is also under scrutiny by the Lords Commissioner for Standards regarding potential breaches of conduct rules related to her failure to disclose interests in PPE Medpro and her involvement in securing government contracts for the company. Assets totaling £75 million tied to Baroness Mone and her husband have been frozen or restricted by court orders.