PPE Medpro, a company associated with Baroness Michelle Mone and Doug Barrowman, is reported to owe £39 million in tax in addition to £148 million following a court ruling that it breached a contract to supply personal protective equipment (PPE) during the COVID-19 pandemic. Documents filed by the company’s administrator stated this tax obligation, which was revealed in a report made public on Tuesday.
A court determined last month that PPE Medpro failed to provide medical gowns that met the necessary sterility certification required under their contract. Following this breach, the UK Department of Health and Social Care (DHSC) initiated legal action against the company and was successful in securing damages.
PPE Medpro entered administration in the previous month. The government has announced intentions to recover the owed funds, with Health Secretary Wes Streeting asserting a strong pursuit against the company. Current financial filings indicate that PPE Medpro has only £672,774 available to pay unsecured creditors, a figure significantly lower than the liabilities owed to the DHSC.
PPE Medpro was established in May 2020 under Barrowman’s leadership and was awarded government contracts, assisted by a recommendation from Baroness Mone. During the pandemic, the demand for PPE surged as hospitals faced shortages.
In a 2023 media interview, Doug Barrowman stated he was the ultimate beneficial owner of the company, with shares held by an accountant. He acknowledged receiving over £60 million in profits from PPE Medpro, while Baroness Mone disclosed that substantial proceeds were placed into a trust for her and her children.
Additionally, an Isle of Man-based company linked to Barrowman, Angelo (PTC), reportedly holds a secured debt of £1 million from PPE Medpro, which suggests it may be prioritized over government creditors in terms of repayment. The administrators expect that funds will be sufficient to satisfy this secured debt fully.
Source: https://www.bbc.com/news/articles/c5y95p045g9o?at_medium=RSS&at_campaign=rss