Government to sue Mone-linked PPE firm for £122m

The government is suing a company that supplied it with personal protective equipment (PPE) for £122m plus costs.

PPE Medpro won contracts through the government's so-called VIP lane in 2020 after being recommended by Conservative peer Baroness Mone.

The government is attempting to get its money back on one of the deals, for the supply of medical gowns during the pandemic, in the High Court.

PPE Medpro said it would "rigorously" defend the claim.

The company accused the government of a "cynical attempt" to recover money from suppliers who had acted in good faith and to contract specifications.

A Department of Health and Social Care spokesperson said: "We can confirm that we have commenced legal proceedings in the High Court against PPE Medpro Limited for breach of contract regarding gowns delivered under a contract dated 26 June 2020.

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

The government has previously described the PPE Medpro medical gowns deal as an "underperforming" contract.

In a statement, the company said it was clear by the end of 2020 that the government had "vastly over-ordered" PPE and would never be able to use it all.

It said consultants had been brought in to "pick over all the contracts" on "technicalities".

"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 company said.

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

The government revealed last year that Baroness Mone was the "source of referral" for PPE Medpro getting a place on the so-called VIP lane for PPE offers coming from ministers, officials or peers.

In other words, she recommended the company.

VIP lane offers were treated with greater urgency and were 10 times more likely to result in contracts than offers being made outside this route.

Lady Mone contacted Lord Agnew, the Cabinet Office minister, about the firm and he directed the offer to the VIP lane.

Baroness Mone is taking a leave of absence from the House of Lords, meaning she will not sit as a Conservative peer. She says she wants to clear her name amid allegations she benefitted from the contracts.

In December 2020, lawyers for Baroness Mone said she "had no role or function in PPE Medpro, nor in the process by which contracts were awarded to PPE Medpro".

The House of Lords commissioner for standards has launched an investigation into her "alleged involvement in procuring contracts for PPE Medpro".

But the Commissioner's website says his investigation has been paused while the matter is investigated by the police or another agency as part of a criminal investigation.