A PPE firm connected to Baroness Michelle Mone owes a massive public debt. This company missed a critical deadline for repayment. PPE Medpro failed to pay £122 million in damages. Consequently, the total owed has now grown significantly. The government is aggressively pursuing the full amount.
Therefore, the Department of Health and Social Care won its case. A High Court judge ruled against PPE Medpro earlier this month. The company supplied sterile gowns during the pandemic. However, the judge found the gowns did not meet required standards. Therefore, the court ordered the firm to repay the money.
However, health Secretary Wes Streeting expressed strong condemnation. He said the firm “pocketed taxpayers’ hard-earned cash”. Streeting then promised to pursue the company vigorously. The government wants to recover this massive public debt. The original £122 million has now accrued substantial interest.
The total sum owed is currently £145.6 million. This amount will continue growing every single day. Interest is now accruing at eight percent annually. The company entered administration just before the judgment. This move complicates the government’s recovery efforts.
Forvis Mazars is the firm’s joint administrator. The administrators declined to comment on the situation. They now control the business and its remaining assets. Their duty involves recovering money for all creditors. The company’s recent accounts show minimal net assets.
PPE Medpro had only £666,025 in net assets. The company also spent millions on its legal defense. It used approximately £4.2 million from its reserves. Baroness Mone originally recommended the company. Her husband, Doug Barrowman, led the consortium.
The government awarded the contract in 2020. This happened during the national Covid-19 crisis. The deal was for 25 million sterile gowns. The government later initiated legal action in 2022. It claimed the supplied gowns breached contract terms.
The National Crime Agency is also investigating. Its probe examines the circumstances around the contract. A spokesman for Mr. Barrowman commented previously. He said £83 million went to other companies. The investigation’s full scope remains unclear currently.
Politicians across parties are now demanding action. They want Baroness Mone to lose her peerage. Removing a peerage requires an act of Parliament. The situation highlights a massive public debt. Taxpayers ultimately bear the cost of this failure.
For more business updates, visit London Pulse News.
