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The Prime Minister has said the government remains determined to reclaim taxpayers money from PPE Medpro, a company linked to Tory peer Michelle Mone, after a High Court ruling that it must repay the government £145.6 million for breaching a contract to supply surgical gowns during the pandemic. The Department of Health and Social Care took legal action against PPE Medpro over claims the medical gowns it supplied did not comply with relevant healthcare standards. The High Court ruled the Medpro failed to prove whether or not its surgical gowns, which were to be used by NHS workers, had undergone a validated sterilisation process. The court said the firm had until 15 October to pay the damages to the government. The company has missed this deadline to comply. Asked about the government’s plans to reclaim the funds, Starmer said: "We've been really clear about getting our money back, whether it's Michelle Mone or anybody else, and Rachel Reeves, the Chancellor, was very clear about this in opposition. "We intend to get as much of our money back as possible, because that is taxpayers' money and we want it back. And we'll go after every penny of it." Asked whether the government is still pursuing the matter, the Prime Minister said: "We're not going to give up on the money, no, absolutely not." The firm was initially ordered to pay £122 million to the Government, with interest – at a rate of 8% per year – bringing the total to £145.6 million. A spokesman for the consortium stated previously it was prepared to “enter into a dialogue” with the government to reach a settlement. “On Friday October 11, it was made clear that the consortium partners of PPE Medpro are prepared to enter into discussions with the Government, via the administrators, to reach a possible settlement. This was made very public, and the Government was made aware of it. Yet, very disappointingly, the Government has made no effort to respond or seek to enter into discussions.” Court documents lodged in May state that the DHSC assert that the gowns were delivered to the UK in 72 shipments between August and October 2020, with £121,999,219.20 paid to PPE Medpro between July and August that year. In December 2020, the gowns were rejected by DHSC and the company was told it would need to repay the money. The company did not comply with the demand, and the gowns remained in storage unable to be used. Baroness Mone, who grew up in Glasgow and started her business career here, described the judgment as an “establishment win” for the government in a case that was “too big for them to lose”. She said: “Today’s judgment against PPE Medpro is shocking, but all too predictable. It is nothing less than an establishment win for the government in a case that was too big for them to lose.” Mrs Justice Cockerill, in delivering her ruling on Wednesday, said Baroness Mone had taken “up the fight on behalf of Medpro” with the Cabinet Office as the company sought to agree the contract for 25 million surgical gowns. The judge said that during the closing stage of contract negotiations, one of PPE Medpro’s directors, Anthony Page, contacted Baroness Mone, who then threatened “further escalation”. She said: “Mr Page engaged his ‘big gun’ – contacting Baroness Mone who then took up the fight on behalf of Medpro direct with Chris Hall from the Cabinet Office threatening further escalation. Baroness Mone was plainly of the view that there was a contract.” The judge also said PPE Medpro “claimed to be well established” to the DHSC, and the “years of experience” of Mr Barrowman were “trumpeted”. She said: “Medpro was presenting itself to DHSC as a worthy entrant into the fast lane for approval as a supplier and aiming to land contracts worth hundreds of millions of pounds of public money. It said repeatedly that it had experience.” Medpro appointed administrators the day before the court decision. Its last set of accounts said it had £666,025 of shareholders' funds.
