A company associated with Baroness Mone is required to reimburse the government with over £121 million for breaching a Covid PPE contract.
PPE Medpro, which had the responsibility of delivering 25 million surgical gowns during the pandemic, was taken to court by the Department of Health and Social Care (DHSC) for allegedly providing substandard goods. A High Court judge has now determined that the company violated the contract and has given them a two-week deadline to pay nearly £122 million. The company, a consortium led by Baroness Mone’s husband, entrepreneur Doug Barrowman, had secured government contracts under the former Tory government. This was facilitated after Baroness Mone, currently on a leave of absence from the House of Lords, recommended the company to government officials. Both individuals have denied any misconduct.
In response to the ruling, Chancellor Rachel Reeves stated, “We are reclaiming our funds. The money rightfully belongs in our educational institutions, NHS, and communities.” Government lawyers argued during a trial earlier in the year that the government was entitled to recover the £121 million cost of the contract, in addition to expenses for transportation and storage amounting to £8,648,691. The company’s attorneys contended that they were unfairly targeted and accused the government of having second thoughts, asserting that the gowns became defective due to inadequate storage conditions post-delivery to the DHSC.
The company also filed a counterclaim alleging that the DHSC had a duty of care to provide guidance on adhering to the contract terms. Prior to the judgement, PPE Medpro initiated steps to appoint an administrator. Baroness Mone expressed on X that she and her husband were being made scapegoats in the PPE scandal, mentioning that the DHSC had rejected substantial settlement offers.
Summarizing her ruling on Wednesday, Mrs. Justice Cockerill concluded that the company breached the contract as the gowns were unsuitable for use as sterile garments. However, she ruled that the government was not entitled to reimbursement for storage costs. The payment is due by 4pm on October 15, as per the judge’s directive.
Mr. Barrowman criticized the ruling as a “miscarriage of justice.” In a written statement, he expressed disappointment with the judgement, alleging that the court disregarded the substantial evidence presented during the trial. He claimed that justice was not served and that the outcome was predetermined in favor of the DHSC and the government.
In May this year, the DHSC stated in court documents that it paid PPE Medpro £121,999,219.20 in the summer of 2020 and declined the gowns in December of the same year. Despite requesting repayment, the company has not complied, and the gowns remain stored and unusable. According to written submissions for the trial, initial contact with Medpro was made through Baroness Mone, with further discussions handled by one of the company’s directors, Anthony Page. The department emphasized that the focus was on compliance and not on any alleged impropriety or profits made.
During the trial, it was disclosed that the majority of gowns should have been sterile under the contract terms. However, a significant portion failed sterility tests, leading to the DHSC’s rejection of the gowns or entitlement to damages. The company’s legal representation argued that the excessive gowns ordered by the government indicated buyer’s remorse and suggested that the company was unfairly singled out.
Baroness Mone asserted on X that she and her husband were unjustly targeted to divert attention from PPE procurement mismanagement. She claimed that the case was not about the gowns or finances, highlighting that PPE Medpro had offered to replace the gowns and settle financially before the trial, offers which were turned down by the DHSC.
Receive email updates containing the day’s top stories
