A company associated with Baroness Michelle Mone has been officially closed down for failing to repay around £150 million to the government. PPE Medpro, which was placed into administration in September, owed £148 million to the Department of Health and Social Care following a legal battle over ineffective Covid protective gowns. Additionally, the firm is reported to owe approximately £39 million to the tax authorities.
The decision to wind up the company was made during a court session in London, where it was highlighted that the government’s substantial debt was incurred due to the supply of faulty equipment during a critical national emergency. The court ruling emphasized the need for a thorough investigation to determine how the outstanding debt could be recovered since little of the company’s finances remain.
Following a plea by representatives of the Secretary of State for Health and Social Care, the court ordered the immediate winding-up of the company, citing its severe insolvency. The government was identified as the primary creditor, accounting for nearly 79% of the unsecured debts, with HMRC being the second significant creditor.
Baroness Mone, known for her involvement in Ultimo lingerie, has come under scrutiny regarding her connection to PPE Medpro. The company, established to supply PPE to the government during the pandemic, received contracts through a prioritized channel for politically linked individuals. However, the gowns supplied were deemed non-compliant, leading to a legal dispute and subsequent closure of the company.
Subsequent investigations revealed that Baroness Mone and her husband reportedly benefited from substantial profits generated by PPE Medpro. The National Crime Agency is currently scrutinizing their involvement, with the Department of Health and Social Care pursuing repayment of the outstanding debt, including accrued interest.
Despite claims of owed funds and potential legal actions against third parties, the administrators reported minimal assets remaining within the company. Efforts to reclaim taxpayer funds from PPE Medpro continue, with the Health and Social Care Secretary reaffirming the commitment to recovering misappropriated money. Baroness Mone and her husband maintain their innocence amidst ongoing investigations.
