A company associated with Baroness Michelle Mone, PPE Medpro, has missed a deadline to repay £122 million following a breach of a Covid-19 personal protective equipment (PPE) contract. The Department of Health and Social Care (DHSC) won a legal case against PPE Medpro earlier this month, with the court ruling that some of the supplied gowns did not meet necessary healthcare standards and were not “sterile.”
Health and Social Care Secretary Wes Streeting indicated the government would take further action to recover the funds after PPE Medpro failed to pay the required damages by 16:00 BST on Wednesday. As of now, the company owes over £145 million, including £23.6 million in interest, which is accruing at a rate of 8% annually until fully settled.
PPE Medpro entered administration on 30 September, a day prior to the court judgment. The DHSC stated that the total sum owed will continue to gather interest until payment is completed. Forvis Mazars, one of the joint administrators assigned to manage the firm and recover debts, declined to comment on the situation.
Initially, PPE Medpro was awarded a government contract in 2020 to supply PPE after receiving a recommendation from Baroness Mone. However, after ordering 25 million sterile gowns, the government initiated legal action in 2022, asserting the gowns did not adhere to the terms of the contract. In response, PPE Medpro contended that it fulfilled its contractual obligations and that the gowns were indeed sterile.
Following the court’s decision, Baroness Mone has been subject to calls from various political parties to consider the removal of her peerage, a process that requires an act of Parliament.
Source: https://www.bbc.com/news/articles/c629rdgyzl5o?at_medium=RSS&at_campaign=rss