Government takes legal action against PPE firm at centre of Mone row

Department of Health launches legal action over £122m gowns contract against PPE firm at centre of a row over its alleged links to Tory peer Michelle Mone

  • Legal action launched against PPE firm at centre of Tory peer Michelle Mone row 
  • Department of Health issues proceedings at High Court against PPE Medpro
  • Ministers are said to be pursuing a claim for the full £122m paid to the company

The Government has launched legal action against the PPE firm at the centre of a row over its alleged links to Tory peer Michelle Mone, it was confirmed today.

The Department for Health and Social Care has issued civil legal proceedings against PPE Medpro over a contract to supply gowns – reportedly worth £122million – signed during the Covid crisis.

Officials are claimed to have rejected the supply of 25million sterile surgical gowns, under the contract agreed with PPE Medpro in June 2020, following an inspection when they arrived at an NHS depot.

DHSC are said to be pursuing a claim for the full £122million paid to the company, as well as seeking to recover the costs of storing and disposing of the gowns. 

The Goverment’s decision to pursue breach of contract proceedings in the High Court is likely to bring further scrutiny of PPE Medpro’s dealings with ministers during the pandemic.

Earlier this month, Baroness Mone announced she was taking a leave of absence from the House of Lords amid a row about her alleged links to the firm.

The 51-year-old, the founder of a lingerie firm, has denied reports she benefited from PPE Medpro winning contracts worth more than £200million during the pandemic.

It has been claimed Lady Mone, who was made a Tory peer by ex-prime minister David Cameron in 2015, and her children received £29million originating from profits of the company.

She is alleged to have helped PPE Medpro secure a place in a Government ‘VIP lane’ for Covid contracts.

The Government is under an obligation to release papers relating to PPE Medpro’s contracts with DHSC after a motion was passed by the House of Commons two weeks ago.

Baroness Mone, the founder of a lingerie firm, has denied reports she benefited from PPE Medpro winning contracts worth more than £200million during the pandemic

The Government has issued civil legal proceedings against the firm over a contract to supply gowns – reportedly worth £122million – signed during the Covid crisis. (Stock photo)

The Department for Health and Social Care has issued civil legal proceedings against PPE Medpro in the High Court

Responding to the launching of legal action by DHSC, PPE Medpro today said the case over the supply of gowns would be ‘rigorously defended’.

It also accused the Government of a ‘cynical attempt to recover money from suppliers’ who acted in good faith.

A statement issued by the firm said: ‘PPE Medpro will demonstrate to the courts that we supplied our gowns to the correct specification, on time and at a highly competitive price.

‘The case will also show the utter incompetence of DHSC to correctly procure and specify PPE during the emergency procurement period.

‘This will be the real legacy of the court case and it will be played out in the public arena for all to see.’

PPE Medpro claimed DHSC was fighting over ‘contract technicalities’ such as whether gowns were single or double-bagged because it had ‘vastly over-ordered’ protective equipment.

The firm said it had made ‘numerous attempts at mediation with DHSC’ but ‘they didn’t want to settle’.

The PPE Medpro statement added: ‘Over a two month period, July through to end of August 2020, PPE Medpro supplied DHSC with 25 million sterile gowns.

‘The gowns were manufactured to the correct quality, standards and specification set out in the contract, delivered on time and at a price that was 50 per cent of what DHSC had been paying at the time.’

But ‘by the end of 2020 it was clear that DHSC has vastly over ordered and held five years supply of PPE across the seven major categories including gowns’ and because of limited lifespans for products ‘it was clear that the DHSC would never be able to use all the PPE they procured’, the firm said.

The statement continued: ‘Consultants were then brought in to pick over all the contracts and fight product not on quality but on contract technicalities that were never envisaged at the time of contract.

‘For example, PPE Medpro’s contract never specified double bagging of gowns. 

‘Yet it became clear in late 2020 that all the gown manufacturers who had correctly produced single bagged gowns were being unfairly challenged by DHSC.

‘Despite numerous attempts at mediation with DHSC, it is clear they didn’t want to settle.

‘Too many gowns and other PPE items that will never enter the supply chain. That’s why DHSC currently have 174 disputes with suppliers to a value of £4 billion. Most of this product will be incinerated or given away.’

A DHSC spokesman said: ‘We can confirm we have commenced legal proceedings in the High Court against PPE Medpro Limited for breach of contract regarding gowns delivered under a contract dated June 26, 2020.

‘We do not comment on matters that are the subject of ongoing legal proceedings.’

Labour deputy leader Angela Rayner said: ‘After nearly a year of hiding behind a mediation process with a company linked to one of their own peers, Conservative ministers have finally been shamed into action to recover taxpayers’ money after damning revelations, public outcry and Labour pressure.

‘Time will now tell if the shoddy contracts they drew up are sufficiently robust to retrieve the public money they carelessly handed over.

‘Labour will put an end to this culture of Conservative cronyism and waste with a new plan for procurement and an Office for Value for Money to ensure taxpayers’ money is treated with respect.’

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