"A company linked to Baroness Michelle Mone and her husband Doug Barrowman owes 39m in tax on top of the 148m it was ordered to pay the government for breaching a contract to supply PPE. Documents filed by PPE Medpro's administrator on Tuesday revealed the figure owed to His Majesty's Revenue and Customs (HMRC). Last month a court ruled the company breached a contract to supply medical gowns during the Covid pandemic because they did not meet certification requirements for sterility."
"PPE Medpro was put into administration last month, and Health Secretary Wes Streeting said the government would pursue the company "with everything we've got" to recover the cash. PPE Medpro has 672,774 available to unsecured creditors, far less than the money owed to the DHSC, the administrators' filings show. They also reveal that the debt to the government is even bigger than previously known."
"During the outbreak of the Covid pandemic in 2020, the government scrambled to secure supplies of PPE as the country went into lockdown and hospitals across the country were reporting shortages of clothing and accessories to protect medics from the virus. In May that year, PPE Medpro was set up by a consortium led by Baroness Mone's husband, Doug Barrowman, and won its first government contract to supply masks through a so-called VIP lane after being recommended by Baroness Mone."
PPE Medpro faces combined liabilities including £39m in tax and £148m in damages after a court found supplied medical gowns failed sterility certification during the COVID-19 pandemic. Administrators' filings show only £672,774 available to unsecured creditors and reveal the government's claim is larger than previously known. PPE Medpro entered administration last month. The Department of Health and Social Care sued and won damages. The company was set up in May 2020 by a consortium led by Doug Barrowman and won contracts via a VIP lane. Mr Barrowman acknowledged receiving over £60m in profits. Health Secretary Wes Streeting vowed aggressive recovery. HMRC and the administrators declined to comment.
#ppe-medpro #covid-19-ppe-contracts #contract-breach-and-damages #tax-debt-and-administration #baroness-michelle-mone
Read at www.bbc.com
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