The UK Government has vowed it will "not rest" until it recovers the £145m owed to the taxpayer from a company linked to Michelle Mone. It comes after a Scots MP called on Keir Starmer's successor as Prime Minister to "make sure the government does everything in its power to claw back the taxpayer money wasted on this dodgy and dangerous contract".
Background of the PPE Medpro Case
PPE Medpro, founded by Mone's husband Doug Barrowman, was ordered to pay £122m plus interest by October 15 last year after it lost a High Court battle over a Covid contract. But no cash has so far been returned. The Scots lingerie entrepreneur had referred PPE Medpro to the then Tory government through its controversial Covid VIP lane in 2020. She later denied any involvement in the firm - but it later emerged she and her husband had benefited from £65m in profits from it.
The legal row erupted after the UK Government ordered 25 million sterile gowns from the company at the height of the pandemic which were later found not to meet NHS standards. PPE Medpro argued it had complied with the contract and that the gowns were sterile. The company entered administration on September 30 - the day before a court judgement went against it.
Political Reactions and Demands
Susan Murray, the Lib Dems' Scottish affairs spokeswoman, said: “Michelle Mone lied to the country. She repeatedly denied that she would make money from this contract, despite profiting to the tune of millions. The substandard kit supplied by PPE Medpro put staff and patients in harm’s way. Keir Starmer was very clear that he would go after every penny of the money owed by PPE Medpro. His successor must keep to that promise and make sure the government does everything in its power to claw back the taxpayer money wasted on this dodgy and dangerous contract.”
Government's Commitment to Recovery
Starmer previously told the Record "we're not going to give up on the money, no, absolutely not" when asked if taxpayers would get their cash back from PPE Medpro. Asked how his Government would get the cash back, Starmer said: "We've been really clear about getting our money back, whether it's Michelle Mone or anybody else, and Rachel Reeves, the Chancellor, was very clear about this in opposition. We intend to get as much of our money back as possible, because that is taxpayers' money and we want it back. And we'll go after every penny of it."
A Department of Health and Social Care spokesperson said: "We have been clear that we will not rest until we’ve recovered taxpayer money paid to failed suppliers like PPE Medpro, which supplied defective equipment and unfairly profited from it."
Legal Actions and Ongoing Cases
It was reported last week that Mone and Barrowman are among individuals being sued in an attempt to recover some of the millions owed to the government. The joint liquidators from the firm Interpath Advisory have launched a case against six individuals and five companies linked with the firm, after PPE Medpro was put into liquidation. Barrowman and Mone were not directors of PPE Medpro - and for a long time they denied any connection with the firm. Barrowman later confirmed in a 2023 BBC interview that he was the ultimate beneficial owner of the company. In the same interview, Mone admitted that she was a beneficiary of a trust which had received some of the profits from PPE Medpro.
