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Firm linked to UK underwear tycoon must repay $163 million for breaching COVID contracts
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KOB.com
LONDON (AP) — A British High Court judge ruled Wednesday that a company linked to an underwear tycoon must repay the government more than 121 million pounds ($163 million) for breaching a contract to supply 25 million surgical gowns during the coronavirus pandemic.
The consortium was awarded the lucrative contracts by the former Conservative administration led by Prime Minister Boris Johnson to supply personal protective equipment (PPE) during the pandemic, after Mone had recommended it to ministers.
Under the fast-track model employed by the government at the time, preferential treatment was given to companies recommended by politicians.
The case against PPE Medpo come to symbolize the hundreds of millions of pounds wasted through hastily awarded contracts for protective equipment.
The new Labour government, which came into power in July 2024, sued PPE Medpro over allegations that it breached a deal for the gowns as the items were “faulty” by not being sterile.