Today is the High Court’s deadline for a firm linked to Baroness Michelle Mone to repay £122m for supplying defective PPE at the height of the pandemic, with no indication the Department of Health and Social Care (DHSC) will be paid in full.
PPE Medpro, the company founded by her husband Doug Barrowman and introduced to a “VIP lane” for providers by the Conservative peer, has until 4pm to make the payment.
While Mr Barrowman has described himself as the “ultimate beneficial owner” of PPE Medpro, and says £29m of profit from the deal was paid into a trust benefitting his family, including Baroness Mone and her children, he was never a director and the couple are not personally liable for the money.
PPE Medpro filed for insolvency the day before Mrs Justice Cockerill’s finding of breach of contract was published, and the company’s most recent accounts show assets of just £666,000.
Court-appointed administrators will now be responsible for recovering as much money as possible on behalf of creditors, principally the DHSC.
Last week, Mr Barrowman’s spokesman said “consortium partners” of PPE Medpro are “prepared to enter into a dialogue with the administrators of the company to discuss a possible settlement with the government”.
Read more:
The PPE scandal surrounding Michelle Mone explained
Sky News understands the consortium met last week and has contacted the administrators to request they facilitate a negotiation with the government.
Mr Barrowman’s spokesman did not specify how much they would be willing to offer by way of settlement, but in June PPE Medpro offered to settle the case for £23m.
The DHSC rejected that offer, but with the company in administration and potentially limited avenues to recover funds, there is a risk the government may recover nothing while incurring…
