Deadline day for firm linked to Tory peer to pay back millions over COVID contract scandal

Today is the High Court's deadline for a steadfast linked to Baroness Michelle Mone to repay £122m for supplying defective PPE astatine the tallness of the pandemic, with nary denotation the Department of Health and Social Care (DHSC) volition beryllium paid successful full.

PPE Medpro, the institution founded by her hubby Doug Barrowman and introduced to a "VIP lane" for providers by the Conservative peer, has until 4pm to marque the payment.

While Mr Barrowman has described himself arsenic the "ultimate beneficial owner" of PPE Medpro, and says £29m of nett from the woody was paid into a spot benefitting his family, including Baroness Mone and her children, helium was ne'er a manager and the mates are not personally liable for the money.

PPE Medpro filed for insolvency the time earlier Mrs Justice Cockerill's uncovering of breach of contract was published, and the company's astir caller accounts amusement assets of conscionable £666,000.

Court-appointed administrators volition present beryllium liable for recovering arsenic overmuch wealth arsenic imaginable connected behalf of creditors, principally the DHSC.

Last week, Mr Barrowman's spokesperson said "consortium partners" of PPE Medpro are "prepared to participate into a dialog with the administrators of the institution to sermon a imaginable colony with the government".

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Sky News understands the consortium met past week and has contacted the administrators to petition they facilitate a dialog with the government.

Mr Barrowman's spokesperson did not specify however overmuch they would beryllium consenting to connection by mode of settlement, but successful June PPE Medpro offered to settee the lawsuit for £23m.

The DHSC rejected that offer, but with the institution successful medication and perchance constricted avenues to retrieve funds, determination is simply a hazard the authorities whitethorn retrieve thing portion incurring further ineligible expenses.

What happened during the pandemic?

In June 2020, PPE Medpro won contracts worthy a full of £203m to supply 210 cardinal masks and 25 cardinal surgical gowns aft Baroness Mone contacted ministers, including Michael Gove, connected the company's behalf.

While the £81m disguise declaration was fulfilled, the gowns were rejected for failing sterility standards, and successful 2022 the DHSC sued. Earlier this month, Mrs Justice Cockerill ruled PPE Medpro was successful breach of declaration and liable to repay the afloat amount.

Mr Barrowman has antecedently named respective different companies arsenic portion of the gown supply, including 2 registered successful the UK, and past week his spokesperson said determination was a "strong case" for the head to prosecute them for the money.

One of the companies named has denied immoderate transportation to PPE Medpro and 2 others person not responded to requests for comment.

What could authorities bash astir it?

Insolvency experts accidental administrators and creditors, successful this lawsuit the government, whitethorn person immoderate recourse to prosecute individuals and entities beyond the liable company, but immoderate process is apt to beryllium lengthy and expensive.

Julie Palmer, a spouse astatine Begbies Traynor, told Sky News: "The administrators volition privation to look astatine what's happened to what look similar important profits made connected these contracts.

"If I was looking astatine this, I would privation to found the nonstop timeline, astatine what constituent were the profits taken out.

"They whitethorn besides privation to see whether determination is simply a assertion for wrongful trading, due to the fact that that efficaciously pierces the firm veil of extortion of a constricted company, and tin let proceedings against institution officers personally.

"The nett of a manager tin besides beryllium expanded to shadiness directors, radical sitting successful the inheritance rather intelligibly with a grade of power of the absorption of the company, successful which lawsuit immoderate claims whitethorn remainder against them."

A spokesperson for Forvis Mazars, 1 of the associated administrators of PPE Medpro, did not remark different than to corroborate the firm's appointment.

The DHSC was approached for comment.