Michelle Mone, the Conservative peer known as Baroness Mone, and her husband Doug Barrowman are at the centre of mounting calls for a comprehensive freeze on assets linked to their family following a High Court ruling that has ordered their company PPE Medpro to repay £122 million to the UK Government. This judgment stems from the firm's breach of a £203 million Covid-19 contract to supply 25 million surgical gowns, which were deemed faulty and unfit for NHS use due to a failure to meet sterility standards.

The gowns, manufactured in China and rejected by the Department of Health and Social Care (DHSC), were part of PPE Medpro's contract awarded via a controversial "VIP fast lane" under the previous Conservative government. Lady Mone recommended the company for the contract, a connection that later became the subject of extensive scrutiny. Initially denying involvement for three years, Mone admitted in 2023 to misleading the public about her role, while both she and Barrowman maintain they committed no wrongdoing. However, the High Court's decision emphasises compliance failures rather than profit motives, with the government seeking repayment of the contract's full value plus minor additional costs.

Following the ruling, it has emerged that Barrowman and Mone reaped approximately £65 million in profits from the PPE deal, which were transferred into trusts benefiting Mone, Barrowman, and their three children. Between 2020 and 2022, companies linked to the couple undertook an aggressive property acquisition spree in Glasgow, acquiring over a dozen high-value homes worth around £13 million, which added to their substantial property portfolio including London residences and a luxury yacht. Some properties are already subject to a partial £75 million assets freeze ordered by the courts last year amid an ongoing National Crime Agency (NCA) investigation into alleged fraud and bribery.

Despite these measures, critics have highlighted that the owners continue to benefit financially, collecting estimated rental income of up to £300,000 annually from some of these Glasgow properties. This has intensified calls from senior Scottish politicians and campaigners for a total freeze on all assets associated with the Barrowman-Mone family to safeguard taxpayer interests and ensure full recovery of the government’s funds. Susan Murray, Liberal Democrat MP for Mid Dunbartonshire, condemned the situation as a "waste of billions" of public money benefiting Conservative donors during the pandemic.

SNP MP Chris Law and Scottish Greens MSP Patrick Harvie echoed the demand to freeze all assets linked to the couple, cautioning against any scenario allowing the family to retain wealth acquired through what they describe as a scandalous exploitation of the Covid procurement system. Harvie particularly criticised Mone’s continued status as a House of Lords member with voting rights and entitlement to expenses, arguing that retaining her peerage amid this controversy would pose a "huge moral hazard" to UK democracy.

Legal complexities surround the government's efforts to recoup the funds, as PPE Medpro has filed for administration and reports show its UK accounts list net assets of just under £700,000. There are suggestions of a second PPE Medpro company based in the Isle of Man, where the Barrowmans reside, which could hold additional assets. Tax experts propose that pursuance of international and offshore assets might still enable partial recovery of the £122 million sum.

The High Court judgment underscores the problematic nature of emergency government contracts awarded during the pandemic, with PPE Medpro's gowns failing key regulatory compliance measures, lacking required sterility certifications, and never being used by NHS staff. The case forms part of a wider political effort by the Labour government, led by Chancellor Rachel Reeves, to reclaim funds lost to flawed Covid procurement. Reeves confirmed that recovered money would support public services, reflecting broader public anger over the perceived misuse of taxpayer money.

This scandal has not only financial but significant political repercussions. Michelle Mone lost the Conservative whip when the scandal surfaced and has expressed disinterest in returning to the Lords. She recently accused Labour politicians of stirring up hostility towards her family, claiming she and her children have received threats following coverage of the probe. Nonetheless, there remains pressure from campaigners and politicians alike for her to be stripped of her title.

As investigations by the National Crime Agency continue, the focus remains on securing financial redress and ensuring accountability for what critics label a severe breach of public trust. The government’s legal victory marks a pivotal moment in addressing coronavirus contract controversies, but questions linger over the full extent to which UK taxpayers will see their money returned.

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Source: Noah Wire Services