Company linked to Mone must repay almost £122m over Covid PPE contract breach

A company linked to Tory peer Michelle Mone has been ordered to repay almost £122 million to the Government for breaching a contract to supply surgical gowns during the Covid-19 pandemic.

The Department of Health and Social Care (DHSC) sued PPE Medpro at the High Court over allegations that it breached a deal for the 25 million gowns because the items were “faulty” by not being sterile.

Baroness Mone criticised the High Court judgment, calling it a win for the “establishment”, while her husband, Doug Barrowman, said it was a “travesty of justice”.

The peer, who is on a leave of absence from the Lords, has claimed she is the target of a “vendetta” by the Government.

Health Secretary Wes Streeting said: “PPE Medpro put NHS staff and patients in danger with substandard kit whilst lining their own pockets with taxpayers’ money at a time of national crisis.

“Today’s court ruling makes clear we won’t stand for it and we’re coming after every penny owed to our NHS.

“This Government will ruthlessly pursue any company which tried to exploit the pandemic for their own ends while our health service was fighting to save lives.”

Chancellor Rachel Reeves, who has been leading work within government to claw back money lost during the Covid-19 pandemic, also welcomed the judgment.

She said: “We want our money back. We are getting our money back.”

During a Labour Party conference fringe event, Ms Reeves reportedly joked about having a vendetta against Lady Mone and Mr Barrowman, saying: “Too right we do.”

Baroness Mone, who created the lingerie brand Ultimo, which she sold in 2014, was made a Conservative peer by David Cameron in 2015.

PPE Medpro, a consortium led by Mr Barrowman, was awarded Government contracts by the former Conservative administration to supply personal protective equipment (PPE) during the pandemic, after Lady Mone recommended it to ministers.

She then acted as the firm’s “big gun” in talks with officials to help get the contract over the line.

In her 87-page ruling, Mrs Justice Cockerill said that the gowns “were not, contractually speaking, sterile, or properly validated as being sterile” which meant they could not be used in the NHS.

Lady Mone played a significant role in securing the contract for PPE Medpro as the Government scrambled to secure supplies of protective equipment from around the world.

She referred the firm to the “high priority lane”, which managed recommendations from MPs, ministers and officials, on the day PPE Medpro was incorporated in May 2020.

The contract was awarded despite concerns being raised about the “potential for conflict of interest” given the Tory peer’s husband was involved with the firm.

The judge said Baroness Mone facilitated a call between DHSC and PPE Medpro officials during contract negotiations, and “took up the fight” for the company in talks with the Cabinet Office.

Barristers for PPE Medpro told the trial it had been “singled out for unfair treatment” and accused the Government of “buyer’s remorse”, claiming the gowns became defective because of the conditions in which they were kept, after being delivered to the DHSC.

Mrs Justice Cockerill found PPE Medpro had breached the contract.

She said the DHSC was entitled to the price of the gowns as damages, but not the costs of storing the items.

The judge said the money must be paid by 4pm on October 15.

Mr Barrowman said: “Today, a travesty of justice took place following the judgment of Lady Justice Cockerill.

“She gave the DHSC (Department of Health and Social Care) an establishment win despite the mountain of evidence in court against such a judgment.

“Her judgment bears little resemblance to what actually took place during the month-long trial, where PPE Medpro convincingly demonstrated that its gowns were sterile.

“This judgment is a whitewash of the facts and shows that justice was being seen to be done, where the outcome was always certain for the DHSC and the Government.”

Lady Mone said: “Today’s judgment against PPE Medpro is shocking but all too predictable.

“It is nothing less than an establishment win for the Government in a case that was too big for them to lose.”

The Covid-19 Bereaved Families for Justice UK campaign group welcomed the court ruling and called for Baroness Mone to be stripped of her title.

Peerages can only be removed by an act of Parliament.

While a life peerage cannot be relinquished, Baroness Mone could choose to resign from being a member of the House of Lords.