A company with ties to Conservative peer Baroness Michelle Mone has been found by the High Court to have breached a multi-million-pound government contract to supply surgical gowns during the height of the COVID-19 pandemic. The court has ordered the firm, PPE Medpro, to repay the entire £121.9m sum it received for the deal.
The ruling marks a significant development in a case that has become a focal point of the controversy surrounding the government’s “VIP lane” for procurement during the public health crisis.
The Core of the Case
The Department of Health and Social Care (DHSC) brought the legal action against PPE Medpro, a consortium led by Lady Mone’s husband, businessman Doug Barrowman. The government’s case centred on the supply of 25 million surgical gowns in 2020, which it stated were “faulty” and non-sterile.
In its ruling on Wednesday, the High Court found that the gowns did not meet the contractual standard. Crucially, the court agreed with the DHSC that the equipment lacked a “validated process to demonstrate sterility,” rendering it unsuitable for use in medical settings. The judgment also stated that it was impossible for the government to have sold the unusable gowns to recoup any of the costs.
As well as seeking to recover the original £121.9m, the government had attempted to claim an additional £8.6m for the costs of transporting and storing the defective items. However, the High Court denied this latter request.
The “VIP Lane” and Denials of Wrongdoing
The case has drawn intense public and media scrutiny due to the involvement of Baroness Mone. The company was awarded the lucrative government contract after she recommended it to ministers. Initially, Lady Mone denied any involvement with PPE Medpro or the process that led to the contract award.
It was later revealed, however, that she was indeed the “source of referral” for the firm, securing it a place on the high-priority “VIP lane.” This fast-track system was designed to quickly process offers of personal protective equipment from leads supplied by government officials, ministers, and MPs.
Both Lady Mone and Mr Barrowman have consistently denied any wrongdoing. Notably, neither of them gave evidence during the trial in June.
In a lengthy online statement released just a day before the court’s ruling, Lady Mone launched a tirade against the government, accusing it of making her and her husband a “poster couple for the PPE scandal.” She claimed they were being unfairly scapegoated for wider failings in the government’s pandemic procurement.
Legal Outcome and Company’s Future
The court’s decision was a clear victory for the government. Legal representatives for the DHSC emphasised that the case was “simply about compliance” with the contract and was “not concerned with any profits made by anybody.”
PPE Medpro’s counterclaim, which argued that the DHSC should have advised the company on how to comply with the contract’s terms, was dismissed by the court.
The financial future of PPE Medpro appears precarious. Ahead of the ruling, the company filed a “notice of intention to appoint an administrator” on Tuesday, a move that often precedes formal insolvency proceedings. This development may complicate the government’s efforts to recover the £122m, as the administration process will determine how the company’s remaining assets are distributed to its creditors.
The ruling intensifies the pressure on Baroness Mone and Mr Barrowman and is likely to fuel further debate over the use of the VIP lane and the oversight of billions of pounds of public money spent on pandemic procurement.
