PPE Medpro Enters Administration, Owes £39 Million to HMRC

PPE Medpro, the personal protective equipment supplier linked to Baroness Michelle Mone, has gone into administration, burdened with a debt of £39 million owed to HM Revenue and Customs (HMRC). This financial turmoil follows a court ruling that ordered the company to pay £148 million in damages, costs, and interest to the Department of Health after it failed to deliver compliant, sterile gowns during the COVID-19 pandemic.

The revelation of PPE Medpro’s administration comes as families affected by the pandemic call for Baroness Mone to be stripped of her title. The firm reportedly owes HMRC exactly £39,009,047.78, a figure that adds to its mounting legal and financial troubles. A spokesperson for Covid-19 Bereaved Families for Justice UK emphasized the need for accountability, stating, “Many of our loved ones died because of a shortage of PPE. We want justice.”

Recent reports indicate that Baroness Mone and her husband, Doug Barrowman, have accrued significant profits from PPE contracts, allegedly totaling £65 million from deals worth £202 million. These contracts were awarded after Mone recommended PPE Medpro to government ministers while she was a member of the House of Lords.

Legal and Financial Fallout

PPE Medpro’s troubles escalated after a recent High Court ruling found the company liable for supplying non-sterile gowns. The firm was given a £122 million damages award, but it failed to meet repayment deadlines. According to the administrators, Forvis Mazars, the company’s current assets total just £951,134, indicating a severe liquidity crisis.

The administrators have stated that further claims against PPE Medpro are anticipated, although HMRC remains tight-lipped due to confidentiality laws. Meanwhile, Health Secretary Wes Streeting has publicly condemned PPE Medpro’s actions, claiming that the company endangered NHS staff and patients. He asserted, “We’re coming after every penny owed to our NHS.”

Compounding the situation is the ongoing investigation by the National Crime Agency, which has been probing suspected criminal offences tied to the procurement of PPE contracts since May 2021. Both Baroness Mone and Barrowman have been interviewed, and their properties have been searched as part of the inquiry.

Controversy Surrounds Baroness Mone

Baroness Mone, who gained prominence as the founder of the lingerie brand Ultimo, has faced intense scrutiny over her involvement with PPE Medpro. Despite her claims of having no connection to the company, she later admitted to misleading the public. Mone has been on a leave of absence from the House of Lords since 2022, yet her influence remains a focal point in this ongoing scandal.

The couple’s financial dealings have raised eyebrows, particularly a loan from Angelo (PTC) Limited, a company linked to Barrowman, which is set to recover its full debt from the administration process. Documents reveal that this firm, established in 2023, is tied to the Knox Foundation, an entity associated with Barrowman. Tax expert Dan Neidle has commented on the situation, suggesting that the couple’s financial practices may be under investigation due to potential tax avoidance schemes.

As the fallout from PPE Medpro’s collapse continues, the call for accountability resonates strongly among those who suffered losses during the pandemic. The need for justice and recovery of public funds remains a pressing issue, with many advocating for rigorous actions against those deemed responsible for the mismanagement of critical resources during a national health crisis.