Covid inquiry to hear evidence about Michelle Mone-linked firm in private | Covid inquiry

The Covid inquiry will hear detailed evidence about the multimillion-pound PPE contracts awarded during the crisis to a company linked to the Conservative peer Michelle Mone, but in private, the inquiry chair has ruled.

The National Crime Agency has since May 2021 been investigating potential criminal offences committed in the procurement of the contracts awarded to the company, PPE Medpro, and argued that its investigation could be prejudiced if the inquiry heard evidence in public.

Lady Mone and her husband, the Isle of Man-based businessman Doug Barrowman, denied for years that they were involved with the company, until in December 2023 they publicly admitted their involvement. Both Mone and Barrowman have denied any criminal wrongdoing.

Last December as the Covid inquiry, chaired by Lady Hallett, prepared to examine the government’s procurement of vital medical supplies during the Covid crisis, the NCA applied for all evidence relating to PPE Medpro to be excluded.

Lawyers representing families whose relatives died during the crisis have argued that the inquiry should hear fuller evidence about the government’s procurement and its controversial “VIP lane”, including PPE Medpro, and criticised the NCA’s application. Media organisations including the Guardian and the BBC argued that the NCA was overstating the risk of prejudice to its criminal investigation, given the amount of information already in the public domain.

In her ruling, Hallett said she had read “sensitive” evidence provided by the NCA and did accept there was “a risk of harm or damage to the possible criminal proceedings” if evidence were heard in public, apparently because it could prejudice the opinions of people who in future might sit on a jury. “The risk arises from placing into the public domain, including to potential jurors, written and oral evidence which may be in issue in any criminal proceedings, if charges are brought,” she ruled.

However, Hallett rejected the NCA’s application for PPE Medpro to be excluded from the inquiry, and ruled instead that the evidence will be heard in a closed session, attended by a maximum of five journalists, with the evidence only to be made public at the end of any possible criminal proceedings.

PPE Medpro was awarded two contracts worth a total of £203m in May and June 2020, to supply millions of face masks and sterile surgical gowns, as the government implemented emergency measures to fill PPE stockpiles.

The contracts were processed through the government’s “VIP lane”, which gave high priority to companies with political connections. In March 2022 the Guardian revealed that Mone had made the first approach, offering to supply PPE, to the then Cabinet Office ministers Michael Gove and Theodore Agnew, who were at the time responsible for procurement. Agnew then referred the offer to civil servants who were operating the high-priority lane.

In November 2022, the Guardian revealed that leaked documents produced by HSBC bank showed that Barrowman had been paid at least £65m from the profits of PPE Medpro, and had then transferred £29m into an offshore trust set up for the benefit of Mone and her three adult children.

In an interview with the BBC’s Laura Kuenssberg in December 2023, Mone and Barrowman acknowledged that they had been involved with the company, and had lied to the media. Barrowman confirmed that he had made more than £60m profit, and had transferred money into the trust; the couple said his children were beneficiaries of the trust as well.

The Covid inquiry’s examination of procurement is expected to include the VIP lane, but the bereaved family groups have expressed disappointment that the inquiry has not sought evidence directly from companies that received contracts. The inquiry also heard in December that government departments had been slow to provide details, explaining this was due to the way documents are stored, and changes of staff.

The Covid inquiry’s public hearings of evidence relating to procurement are due to start on 3 March.