Michelle Mone-Linked PPE Firm Liquidated, Likely Unrecoverable £148 Million Debt
The UK Government appears unlikely to recover a substantial part of the £148 million owed by a dubious PPE supplier associated with Baroness Michelle Mone, following the company’s liquidation.
Liquidation of PPE Medpro
– PPE Medpro, a consortium managed by Mone’s husband, Douglas Barrowman, entered liquidation last Thursday at the Insolvency and Companies Court.
– This crucial development follows an October ruling by the High Court declaring that PPE Medpro breached its contract to supply 25 million surgical gowns during the COVID pandemic.
– The firm had filed for administration in September, just a day before an order was issued to repay the owed amount.
Financial Implications
– The company collectively owes £39 million in tax to HM Revenue & Customs.
– According to records submitted by the administrators, PPE Medpro has only around £600,000 available to distribute among unsecured creditors.
– During the proceedings, barristers for the joint administrators requested that the firm remain in administration to address its outstanding debts, while representatives from the Department for Health and Social Care (DHSC) argued for the company’s immediate liquidation, citing its hopelessly insolvent status.
Judicial Remarks
– Judge Sebastian Prentis, in his decision to liquidate the company, noted the significant size of the debt, which was incurred due to the supply of defective equipment during a national crisis.
– He acknowledged the challenges surrounding the recovery of these funds, mentioning that very little money remains to be distributed.
Government Response
– Health Secretary Wes Streeting expressed a commitment to pursuing recovery of the taxpayer money that was misappropriated by firms such as PPE Medpro.
– He remarked, During the pandemic, when the whole country was making huge sacrifices, PPE Medpro supplied defective PPE and unfairly profited.
Background and Controversy
– PPE Medpro was awarded lucrative contracts totaling £122 million to supply medical gowns to the NHS during the pandemic. It was granted expedited access to the government’s VIP lane for vetted suppliers.
– The supplied equipment has remained in storage since 2020 due to the company’s failure to verify proper sterilization procedures.
Baroness Mone’s Reaction
– Following the High Court ruling, Mone characterized the decision as an establishment win for the government, claiming it was a case that was too big to lose.
– Once a Conservative peer appointed by Prime Minister David Cameron in 2015, Mone took a leave of absence after the scrutiny surrounding PPE Medpro and subsequently lost the Tory whip. Calls for her complete departure from the House of Lords have been voiced by various politicians, including Chancellor Rachel Reeves and Kemi Badenoch.
Regulatory Actions
– The UK Government’s insolvency service confirmed the appointment of an officer to oversee PPE Medpro’s liquidation.
– A spokesperson stated, As with all cases of this nature, they will investigate the cause of the company’s failure and the conduct of directors.
– Interpath Advisory has been designated as the joint liquidator, tasked with winding up the company’s affairs in accordance with statutory duties.
In conclusion, the liquidation of the Michelle Mone-linked PPE firm raises significant concerns regarding financial accountability and the prosecution of fraudulent practices during a national emergency. The likelihood of recovering the £148 million owed appears slim, leaving taxpayers and the NHS in a precarious situation as efforts continue to hold accountable those who profited from the crisis.