A former Conservative peer and lingerie tycoon, Baroness Mone has found herself in serious financial peril after a series of scandals. A UK court has awarded her company, PPE Medpro, almost £122 million in damages because of a secretive contract for personal protective equipment (PPE). The court’s judgement follows accusations that PPE Medpro failed to provide gowns in keeping with the terms of the contract. This certainly raises troubling questions about the entire COVID-19 procurement process.
This past June, the UK government filed legal action against Medpro. They argued in High Court that on-premises sterile gowns provided by the company did not fulfill requirements as set forth in the contracts. The gowns were personally imported by these physicians, manufactured in China. They were awarded the contract as part of the UK government’s enormous 25 million unit pandemic order. The latest available government delivery data is from August and October 2020.
Then, in December 2023, Baroness Mone confirmed herself—via a House of Lords register of interests entry—that she would make a profit on the PPE Medpro contracts. Until now, she had insisted that she never personally profited financially from those agreements. This admission completely contradicts her previous statements and has led to heightened scrutiny on her role.
PPE Medpro was founded in May 2020 by a medical supply chain consortium fronted by Doug Barrowman, Baroness Mone’s spouse. When the pandemic hit, the small company successfully pivoted to get its first government contract providing masks. Baroness Mone, through a special “VIP lane” that fast-tracked procurement for favored companies during the pandemic.
To Medpro’s shock, there came a dramatic swoop when the Department of Health rejected Medpro’s gowns on the cusp of Christmas 2020. They requested a full refund. Justice Cockerill, who presided over the case, ruled that Medpro had indeed violated the terms of the contract.
“That was not complied with by Medpro.” – Justice Cockerill
This meant that the High Court had to determine Medpro’s liability and damages based on a preponderance of evidence. The company has until 15 October to pay this sum to the Treasury. Yet just one day before the court’s ruling, PPE Medpro appointed administrators, revealing it was likely insolvent.
PPE Medpro’s financial future looks bleak. Their most recent public records list just £666,025 in shareholders’ funds. This has led to speculation about its capacity to meet its future fiscal commitments in light of the judgement.
Baroness Mone was scathing about the judgement, describing it as “shocking but all too predictable.” She is convinced that the result was rigged from the beginning. Meanwhile, Doug Barrowman’s spokesperson characterized the ruling as “a travesty of justice,” suggesting dissatisfaction with the court’s handling of the case.
Health Minister Kinnock has said they are committed to recouping public funds lost from the failed contract.
“We want our money back, we are going to get our money back.” – Health Minister Kinnock
The case has attracted attention for its massive financial stakes. Its impact extends beyond this specific contract to shed light on systemic failings with government procurement practices during the pandemic. Critics have expressed alarm that transparency and accountability have been compromised in awarding contracts under emergency conditions.