Company linked to former Tory colleague Michelle Monet did not pay the government any of High Court judgment awarded £122 million for supplying unusable personal protective equipment during the Covid pandemic.
Ms Justice Cockerill ordered PPE Medpro to return the money paid by the Department of Health by 4pm on October 15th. Health and Social Care for 25 million sterile surgical gowns under a contract awarded in June 2020.
Reacting shortly before 5 p.m., the Health Minister Wes Streetingsaid Medpro's PPE failed to meet the deadline and the government will seek payment from the company. The DHSC said interest that had accrued on £122 million since PPE gowns were deemed unfit for use at the end of 2020 now stands at £23.7 million, bringing the total owed to almost £146 million.
“During a national crisis, PPE Medpro sold the government's previous substandard kit and pocketed taxpayers' hard-earned money,” Streeting said. “PPE Medpro missed the payment deadline – they still owe us over £145 million, with interest now accruing daily.
“We will use PPE Medpro with everything we need to put these funds back where they belong – in our NHS.”
According to the DHSC, interest will now accrue at an annual rate of 8%.
The questions are left behind how can the government get their money backas the company, owned by Monet's husband, Isle of Man businessman Doug Barrowman, was left with little money and was placed into administration on September 30, the day before the ruling.
A spokesman for Barrowman and Mone said the “PPE Medpro consortium partners,” referring to the three intermediary companies involved in supplying the gowns, “were willing to engage in dialogue with the company's administrators to discuss a possible settlement with the government.”
The Labor Party did not appear to take up this offer to negotiate a settlement and was waiting for full payment by the due date.
DHSC awarded PPE Medpro a contract to supply gowns worth £122 million and a further contract to supply face masks worth £80.85 million (a total of £203 million) after Mone first approached the then company. Cabinet Office Minister Michael Gove in May 2020. The contracts were processed through the “VIP lane” run by Boris Johnson's Conservative government during the pandemic, giving high priority to people with political connections. Monnet was appointed to the House of Lords by David Cameron in 2015.
She and Barrowman denied through their lawyers They have been involved with Medpro PPE for many years. In November 2022, the Guardian reported that Barrowman was paid at least £65 million from PPE Medpro's profits and then transferred £29 million into a trust set up to help Mona and her three adult children.
In December 2023 Monet admitted in an interview with the BBC that the couple had lied and they confirmed their involvement with the company. Barrowman admitted that he was paid more than £60 million and transferred the money to a trust; the couple said his children were also beneficiaries.
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