A company at the heart of a major personal protective equipment (PPE) procurement scandal has been formally shut down, with the taxpayer set to lose nearly £150 million.
Court Orders Liquidation of 'Hopelessly Insolvent' Firm
PPE Medpro, a company linked to Conservative peer Baroness Michelle Mone, has been wound up by a judge at a specialist companies court. The move came after the Department of Health and Social Care (DHSC) successfully argued for its liquidation, stating the firm was "hopelessly insolvent."
The company owed the government £148 million for breaching a contract to supply 25 million surgical gowns during the height of the Covid-19 pandemic. The debt arose after the DHSC claimed the gowns supplied were not fit for purpose.
Timeline of a Collapse
The firm's financial demise followed a decisive legal defeat. PPE Medpro filed for administration on 30 September, which was the day immediately after it lost a High Court battle against the DHSC over the massive unpaid sum.
As the major unsecured creditor, the government pushed for the company to be liquidated to recover whatever funds remained. However, the prospects for repayment are bleak.
Taxpayers Unlikely to Recover Funds
Administrators have found that only approximately £600,000 is available to be distributed among all unsecured creditors. This paltry sum means the DHSC, and by extension the British public, is highly unlikely to recover any significant portion of the £148 million owed.
The case has cast a long shadow over the government's emergency pandemic procurement processes. Baroness Mone, who initially denied any involvement with the company, later publicly apologised for not admitting her links to PPE Medpro and its government contracts.
The winding up of PPE Medpro marks a costly conclusion to one of the most controversial episodes of the UK's pandemic response, leaving serious questions about accountability and the loss of public funds.
