A PPE company connected to Conservative peer Baroness Michelle Mone is facing a staggering £39 million tax bill, with HM Revenue & Customs taking legal action to recover the outstanding amount.
The Legal Battle Unfolds
HMRC has filed a winding-up petition against PPE Medro, the company that secured lucrative government contracts to supply personal protective equipment during the height of the COVID-19 pandemic. The legal move comes after the company failed to pay millions in taxes owed to the treasury.
Controversial Contracts Under Scrutiny
PPE Medro gained significant attention when it was awarded government contracts worth approximately £200 million through the controversial 'VIP lane' system. The company, which had connections to Baroness Mone, supplied face masks and other protective equipment to the NHS during the critical shortage period in 2020.
Mounting Financial Pressure
The £39 million tax bill represents a substantial financial blow to the company that once profited handsomely from pandemic-related contracts. Industry experts suggest the unpaid taxes could relate to corporation tax, VAT, or other business taxes accumulated during their period of high-volume trading.
Political Fallout Continues
This development adds another layer to the ongoing controversy surrounding PPE procurement during the pandemic. Baroness Mone has previously faced intense scrutiny over her involvement with the company, though she has consistently denied any direct role in securing the government contracts.
What Happens Next?
The winding-up petition could ultimately force PPE Medro into liquidation if the tax bill remains unpaid. The case is expected to be heard in the High Court, where a judge will determine the company's fate based on its ability to settle the enormous debt with HMRC.
