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A 46-year-old man has been arrested by officers investigating £200mn worth of UK government contracts awarded to PPE Medpro during the Covid-19 pandemic.
The man, who has not been identified, was arrested on Wednesday at his home in Barnet, north London, and interviewed by National Crime Agency officers, the agency said.
PPE Medpro has been the focus of controversy over allegations the personal protective equipment it supplied to the Department of Health and Social Care was not fit for purpose.
The NCA said the arrest was based on suspicion of conspiracy to commit fraud and attempting to pervert the course of justice.
PPE Medpro is owned by a consortium led by Doug Barrowman, who is married to Conservative peer Baroness Michelle Mone.
Last year, Mone admitted she stood to gain from profits of about £60mn PPE Medpro made from its government contracts. She had lobbied ministers to give contracts to the company.
PPE Medpro’s bid to supply the UK government in 2020 was placed in a “high-priority lane” after lobbying from Mone, a lingerie entrepreneur who was ennobled by Lord David Cameron.
The health department sued PPE Medpro in 2022 for breach of contract, alleging that £122mn worth of medical gowns supplied by PPE Medpro were not packaged adequately. The company has denied the claims.
Mone in 2023 admitted lying to the press to cover up her involvement with the company in an interview with the BBC. Barrowman has publicly denied being an “investor” in PPE Medpro.
Mone and Barrowman have said they were open about their ties to the company with government ministers.
The NCA opened a probe in May 2021 “into suspected criminal offences committed in the procurement of PPE contracts by PPE Medpro”.
About £75mn of assets linked to Mone and Barrowman were frozen or restrained by court order earlier this year as part of the investigation.
The court order covered assets including a six-bedroom Belgravia townhouse, a country estate on the Isle of Man, and 15 accounts at Coutts, C Hoare & Co, and Goldman Sachs International.
Both Mone and Barrowman have said they are innocent.
PPE Medpro, Mone and Barrowman did not immediately respond to a request for comment.
Additional reporting by Cynthia O’Murchu
