High Court Hears £122m Case Against Company Connected to Michelle Mone

The High Court will begin proceedings on Wednesday regarding the UK government’s multi-million-pound lawsuit against PPE Medpro, a company awarded two personal protective equipment (PPE) contracts during the Covid-19 pandemic. The firm had been recommended by Conservative peer Michelle Mone to ministers.

The Department of Health and Social Care (DHSC) filed the lawsuit in December 2022, seeking to recover £122 million it paid PPE Medpro for 25 million sterile surgical gowns. The gowns were ultimately rejected upon delivery in the UK.

Both the gown contract and a separate £80.85 million agreement for face masks were fast-tracked through the government’s controversial “VIP lane,” which prioritized suppliers with political connections. Mone, who gained recognition through her lingerie brand Ultimo, was appointed to the House of Lords by then-Prime Minister David Cameron in 2015.

After details of PPE Medpro’s contracts were made public in 2020, legal representatives for Mone and her husband, Isle of Man businessman Doug Barrowman, initially denied any involvement with the company. However, The Guardian later reported in 2022 that the couple had played a direct role and that Mone had originally contacted Cabinet Office minister Michael Gove.

In a November 2022 exposé, The Guardian revealed that leaked HSBC documents indicated PPE Medpro had paid at least £65 million in profits to Barrowman’s Isle of Man accounts. He then moved £29 million into an offshore trust reportedly set up for Mone and her three adult children.

By November 2023, Mone and Barrowman publicly acknowledged for the first time their ties to the company. The following month, Mone admitted in a BBC interview that she had previously misled the media. Barrowman also stated that he had earned over £60 million from the contracts and transferred a portion to a trust that included his own children as beneficiaries.

PPE Medpro had initially defended its performance, claiming in a December 2020 statement that the PPE supplied helped protect NHS workers. While the face masks were accepted, the gowns were rejected and never used in the NHS.

The DHSC launched legal action in December 2022 after parliamentary scrutiny intensified following media revelations. That same month, Mone took a leave of absence from the House of Lords.

In its legal complaint, the DHSC contends that the gowns were unsuitable for NHS use due to non-sterility, incorrect technical labelling, and safety concerns. The department is seeking to recover the full £122 million paid, along with an additional £11 million for related storage and disposal expenses, plus interest.

PPE Medpro has consistently asserted that the gowns were produced in China to the proper specifications and remained sterile. The company has said it will vigorously contest the legal action.

This week, ahead of court proceedings, a spokesperson reiterated the firm’s stance: “PPE Medpro categorically denies breaching its obligations to DHSC in the supply of sterile surgical gowns during the Covid pandemic and it will robustly defend these claims in court.”

The DHSC has declined to comment due to ongoing litigation.

Separately, the National Crime Agency (NCA) continues to investigate potential criminal conduct by Mone and Barrowman in relation to the procurement of the PPE contracts. In April 2022, the NCA executed search warrants at their properties. Then in January 2024, the Crown Prosecution Service secured a court order to freeze £75 million in their assets. The couple did not oppose the order and maintain that they have not committed any criminal offences.