A company associated with Baroness Mone is required to reimburse the government with over £121 million following a breach of a Covid PPE contract. PPE Medpro, entrusted with providing 25 million surgical gowns during the pandemic, faced a lawsuit from the Department of Health and Social Care (DHSC) for allegedly supplying defective goods. A High Court judge has determined that the company violated the contract, mandating it to pay nearly £122 million within two weeks. The company, led by businessman Doug Barrowman, Baroness Mone’s husband, secured government contracts under the previous Tory administration. Baroness Mone recommended the company to ministers while on leave from the Lords, and both deny any wrongdoing.
Chancellor Rachel Reeves emphasized the government’s commitment to recovering the funds, stating that the money will be reinvested in schools, the NHS, and communities. Government lawyers argued during the trial earlier this year that the DHSC was entitled to reclaim the £121 million contract costs, along with additional expenses amounting to £8,648,691 for transportation and storage. The company’s legal representatives contended that it was unfairly targeted and accused the government of regretting the deal, attributing the gown defects to post-delivery storage conditions at the DHSC.
PPE Medpro also filed for the appointment of an administrator prior to the ruling, while Baroness Mone expressed frustration at being portrayed negatively in the PPE scandal. Mrs. Justice Cockerill concluded that PPE Medpro breached the contract by providing non-sterile gowns, entitling the DHSC to claim damages equivalent to the gown price. However, storage costs were not deemed recoverable. The judgement necessitates payment by 4 pm on October 15.
Mr. Barrowman criticized the ruling as unjust, denouncing it as a government-favored decision despite extensive evidence presented during the trial. The DHSC disclosed paying PPE Medpro over £121 million in 2020, subsequently rejecting the gowns due to sterility issues. Legal documents revealed that initial contact with Medpro was facilitated by Baroness Mone, with negotiations conducted through the company’s director. The focus remained on contractual compliance rather than impropriety, as emphasized by legal counsel for the DHSC.
In defense, PPE Medpro’s representatives highlighted an oversupply of gowns by the government, suggesting buyer’s remorse as the cause for contract disputes. They argued that the contamination of gowns resulted from post-delivery handling, rather than inherent product deficiencies. Baroness Mone condemned the litigation as an attempt to deflect attention from PPE procurement mismanagement, alleging deliberate scapegoating and vilification against her and her husband. Despite offers to replace gowns and settle out of court, the DHSC opted for an expensive legal pursuit against a financially constrained company.