A firm linked to Michelle Mone must repay £122million for allegedly breaching a Covid PPE contract, a court heard yesterday.
The bra tycoon had recommended PPE Medpro, which went on to provide 25 million ‘faulty’ surgical gowns.
The consortium, led by the Tory peer’s husband Doug Barrowman, was awarded contracts by the former Conservative administration during the pandemic.
PPE Medpro is now being sued by the Department of Health and Social Care (DHSC), with Government lawyers claiming the gowns couldn’t be used because they were not sterile. Baroness Mone and the firm both deny any wrongdoing.
The Government is seeking to recover the costs of the contract, plus an additional £8,648,691 for transporting and storing the items.
PPE Medpro said it ‘categorically denies’ breaching the contract, with its lawyers claiming the company has been ‘singled out for unfair treatment’.
Opening the trial, Paul Stanley KC, for the DHSC, said: ‘This case is simply about whether 25 million surgical gowns provided by PPE Medpro were faulty.
A firm linked to Michelle Mone (pictured) must repay £122million for allegedly breaching a Covid PPE contract, a court heard yesterday
The consortium, led by the Tory peer’s husband Doug Barrowman (pictured), was awarded contracts by the former Conservative administration during the pandemic
It is, in short, a technical case about detailed legal and industry standards that apply to sterile gowns.’
Mr Stanley said in written submissions the ‘initial contact with Medpro came through Baroness Mone’, with contract discussions then going through one of the firm’s directors, Anthony Page.
Baroness Mone remained ‘active throughout’ negotiations, he said, with the peer stating Mr Barrowman had ‘years of experience in manufacturing, procurement and management of supply chains’.
But he said Baroness Mone’s communications were not part of this case, which was ‘simply about compliance’. He added: ‘The department does not allege anything improper happened, and we are not concerned with any profits made by anybody.’
In court documents from May this year, the DHSC said the gowns were delivered to the UK in 72 lots between August and October 2020, with almost £122million paid to PPE Medpro between July and August that year.
The department rejected the gowns in December 2020 and told the firm it would have to repay the money, but this has not happened and the gowns remain in storage.
Mr Stanley said 99.9999 per cent of the gowns should have been sterile under the terms of the contract.
Neither Baroness Mone nor Mr Barrowman is due to give evidence during the five-week trial
The DHSC claims the deal also specified PPE Medpro had to sterilise them using a ‘validated process’, attested by CE marking, which indicates a product has met certain medical standards.
He said ‘none of those things happened’, and that of 140 gowns tested for sterility, 103 failed. He added that the DHSC ‘was entitled to reject the gowns, or is entitled to damages, which amount to the full price and storage costs’.
Charles Samek KC, for PPE Medpro, said the ‘only plausible reason’ for the gowns becoming contaminated was due to ‘the transport and storage conditions or events to which the gowns were subject’ after delivery.
He said testing was done several months after the gowns were rejected, and that the samples were not ‘representative of the whole population’. Mr Samek described the DHSC’s claim as ‘contrived and opportunistic’, with PPE Medpro ‘made the fall guy for a catalogue of failures… and uncontrolled buying spree with taxpayers’ money’.
Neither Baroness Mone nor Mr Barrowman is due to give evidence during the five-week trial.
A PPE Medpro spokesman said it ‘categorically denies breaching its obligations’ and will ‘robustly defend’ the claim.
