DHSC accused of wasting PPE MedPro gowns as experts reveal missed £85m resale opportunity
The 9th day of the ongoing High Court trial between PPE MEDPRO and the Department of Health and Social Care (DHSC) shifts attention to the government’s handling of the remaining PPE stocks – especially why there is no effort to repurpose or sell the £122 million dress provided by PPE Medpro.
Two expert witnesses, Andrew’s DHSC and PPE Medpro’s Igor Popovic, made conflicting views on the dresses that had been delivered.
Andrew New, CEO of Supply Chain Coordination Ltd. (SCCL), responsible for the agency that manages PPE allocations during the pandemic, confirmed that by December 2020, the approximately 500 weeks (or nearly 10 years) of surgical gowns for the UK government lasted about 500 weeks (or nearly 10 years).
When asked if inventory reaches half a millennium of weekly demand, “this is right.”
Despite oversupply, there is no effort to repurpose or resell PPE MEDPRO gowns that were delivered to government agents in 2020. He believes that, given the broader logical challenges faced during PANDEGAMIC, he believes that repackaging and repackaging is impractical and uneconomic.
“It’s not just a matter of paying,” he said. “Will you divert management’s focus on the activity while managing other complex tasks?”
New acknowledged that further launch by Ashley Cukier, attorney at PPE Medpro, any third-party buyer will need to access documentation on product specifications and storage history. However, the DHSC failed to disclose any such information in court, which was a central issue repeatedly raised throughout the trial.
New acknowledge: “If I’m going to buy the product…I hope to see these records if I need to.”
Economist and former NHS consultant Igor Popovic appeared in PPE Medpro, laying out a completely different situation. Popovich concluded in his expert valuation report that the gowns can be sold on the UK market as non-disease surgical gowns, even if they do not meet the sterility standards.
After considering the cost of repackaging and repackaging, he estimated the net resale value to be £85.8 million.
His report said: “Minus the cost of repacking and repackaging (£16,250,130) … In this case, I came up with a net worth point estimate of £85,816,820.”
Popovich also criticized the government for waiting to start selling excess PPE by 2022, where prices and demand have fallen. He noted that earlier resale attempts (times when demand is high) may recycle more taxpayer funds.
“I’m not clear yet why the claimants only started selling extra shares in 2022,” he wrote. “When demand and prices for PPE are greatly reduced, not when demand is strong.”
The testimony is based on the broader argument of PPE Medpro that DHSC failed to mitigate its own losses. Despite the rejection of the dress, the government has not attempted to assess its availability in a non-conflict environment, explore resale options or search for documents to facilitate any ongoing use – all actions that may reduce so-called financial risks.
PPE MedPro believes that this failure not only undermines the infringement of government breach of contract claims, but also points to broader inventory management and missed opportunities to recover public funds.
As the High Court trial enters its final stages, issues surrounding government decision-making, transparency and post-delivery handling of PPE Medpro’s gown continue to dominate.
The central problem still exists: is this a supplier breach of the contract? Or is the state’s failure to supervise?
