PPE Medpro, the personal protective equipment company linked to Baroness Michelle Mone, has entered administration, with reported debts of £39 million owed to HM Revenue and Customs (HMRC). This financial turmoil follows a significant legal defeat, where the company was ordered to pay £148 million to the Department of Health after losing a lawsuit concerning non-sterile gowns.
The revelation comes during a time when public scrutiny of Baroness Mone has intensified, particularly from families who lost loved ones during the pandemic. They are calling for her title to be revoked due to her company’s alleged failure to provide safe equipment. The HMRC has officially noted that PPE Medpro owes £39,009,047.78, a figure that adds to the mounting financial pressures on the company.
Families affected by the pandemic have expressed outrage at the situation. A spokesperson for Covid-19 Bereaved Families for Justice UK stated, “Many of our loved ones died because of a shortage of PPE. Meanwhile, PPE Medpro banked millions and delivered equipment that was unusable and unsafe. We want justice.” The organization is urging the government to take all necessary measures to reclaim public funds and hold accountable those responsible, including the potential stripping of Baroness Mone’s title.
Baroness Mone and her husband, Doug Barrowman, reportedly profited approximately £65 million from £202 million in PPE contracts, secured after Mone lobbied the government. As of September, it was reported that PPE Medpro had been placed into administration just before a court ruling that would have imposed significant financial penalties. New documents indicate that the company might owe as much as £190 million to the taxpayer, although the exact reasons for the £39 million debt to HMRC remain unclear.
The joint administrators, Forvis Mazars, have declined to comment on the HMRC claim but noted that “further claims are anticipated.” The administrators also revealed that the Department for Health and Social Care is owed £148,045,993. They had previously been awarded £122 million in damages, but PPE Medpro failed to meet the repayment deadline.
According to the company’s financial filings, it currently possesses only £951,134 in assets. During the trial, barristers representing PPE Medpro argued that the company was “singled out for unfair treatment” and accused the government of “buyer’s remorse” regarding the defective gowns, which they claim deteriorated due to improper storage conditions after delivery.
PPE Medpro was awarded lucrative contracts by the former Conservative government, following recommendations from Baroness Mone, who has been on a leave of absence from the House of Lords since 2022. The ongoing controversy surrounding her involvement has prompted calls for accountability. In 2023, she publicly admitted to misrepresenting her role in the company’s operations.
The couple, alongside the company, is currently under investigation by the National Crime Agency for suspected criminal offences related to the procurement of PPE contracts. The inquiry, which commenced in May 2021, has involved questioning the pair and searching their properties.
Health Secretary Wes Streeting has been vocal about the implications of PPE Medpro’s actions, stating that the company endangered NHS staff and patients by supplying substandard equipment while enriching themselves. He emphasized that the government is determined to reclaim every penny owed to the NHS.
Adding to the complications, documentation filed at Companies House indicates that a secured creditor linked to Barrowman, Angelo (PTC) Limited, has initiated the administration process over a £1 million debt. The latest administrator reports indicate that there are expectations of sufficient recoveries to repay Angelo (PTC) in full.
Tax expert Dan Neidle highlighted the unusual nature of a company generating significant profits while seemingly avoiding corporation tax, suggesting that HMRC’s scrutiny may extend to other companies associated with Barrowman.
As the situation unfolds, it remains to be seen how the government will navigate the financial recovery process and address the concerns raised by the families affected by the PPE crisis.
