Michelle Mone-Linked PPE Firm Liquidated and Unlikely to Repay £148 Million
The UK government is facing an uphill battle in recovering much of the £148 million owed by a faulty PPE supplier linked to Baroness Michelle Mone, following the company’s liquidation.
– Key Developments:
– PPE Medpro, a consortium managed by Mone’s husband, Douglas Barrowman, was placed into liquidation at the Insolvency and Companies Court on Thursday.
– This decision stems from a High Court ruling in October, which found that PPE Medpro breached its contract to supply 25 million surgical gowns during the Covid-19 pandemic.
– The firm had filed for administration in September, just one day prior to the order to pay.
– Financial Overview:
– HM Revenue & Customs is owed £39 million in tax by PPE Medpro.
– Recent records show that the company had only around £600,000 available to cover unsecured creditors.
At the Insolvency and Companies Court, barristers representing the joint administrators sought to maintain the firm in administration to facilitate debt repayment. However, lawyers for the Department of Health and Social Care (DHSC) described PPE Medpro as hopelessly insolvent, ultimately leading to the court’s decision to wind up the company.
– Court Insights:
– Judge Sebastian Prentis emphasized the enormity of the debt, incurred from the supply of defective equipment during a national crisis. He noted the scant financial resources remaining to address these obligations.
Health Secretary Wes Streeting voiced the government’s unwavering commitment to recovering the hard-earned taxpayer money that was misappropriated by operators like PPE Medpro. He remarked:
> “During the pandemic, while the nation made tremendous sacrifices, PPE Medpro profited from supplying defective PPE. We will tirelessly pursue the funds to return them to the NHS.”
– PPE Medpro’s Contract Controversies:
– The firm received contracts worth £122 million to supply medical gowns to the NHS and was granted access to the government’s VIP lane for expedited processing of approved suppliers.
– However, the supplied equipment has been in storage since 2020 due to the company’s inability to confirm proper sterilization.
Baroness Mone characterized the October court ruling as an establishment win for the government in a case too significant to lose. She was appointed as a peer by Prime Minister David Cameron in 2015 but has since taken a leave of absence and lost the Conservative whip due to the revelations surrounding the PPE scandal. Calls for her departure from the House of Lords have been made by Chancellor Rachel Reeves and Kemi Badenoch.
The UK government’s insolvency service has confirmed that an officer has been assigned to oversee PPE Medpro’s liquidation. A spokesperson noted, As with all cases of this nature, we will investigate the cause of the company’s failure and the conduct of its directors.
Interpath Advisory is now managing the wind-up of the company’s affairs as part of their statutory obligations.
In conclusion, as the liquidation process unfolds, the likelihood of recovering the substantial debts owed by the Baroness Mone-linked PPE firm appears bleak, leaving significant questions about accountability and future regulations in the supply of critical health equipment.