New Tory sleaze row over PPE deals as ex-Conservative chairman Lord Feldman and shamed former health Secretary Matt Hancock are revealed among those who helped total of 47 firms win 'VIP' contracts worth more than £1.5billion at the height of the Covid pandemic

  • Feldman referred three firms to ministers before they got untendered contracts 
  • Hancock referred four, with others coming from Dom Cummings, Michael Gove
  • Lord Feldman insisted today he was just passing 'credible offers on to officials'

Shamed ex-health secretary Matt Hancock and a former chairman of the Conservative Party have been named among several Tories who helped almost 50 firms win PPE contracts worth millions at the height of the pandemic.

Lord Feldman, a former tennis partner of David Cameron, referred three businesses to ministers before they were given untendered contracts using a 'VIP fast lane'.

Mr Hancock, who quit in the summer after having a lockdown-breaching affair with an aide, referred four, while the list of 47 businesses amassed by Politico also showed referrals by ex-No10 aide Dominic Cummings, as well as senior ministers including Michael Gove

The companies were able afterwards to access lucrative contracts for PPE equipment using a much-criticised system set up to speed through supply of vital material as the NHS struggled to cope. 

There is no suggestion that the politicians played a role in awarding contracts to businesses they referred onwards to the procurement process. 

Lord Feldman today denied any wrong-doing, insisting he was just passing 'credible offers on to officials' from Maxima Markets, SG Recruitment and Skinnydip. They were later awarded contracts worth £65million between them.

Jolyon Maugham, director of the Good Law Project said: 'The VIP lane funnelled vast sums of public money into the pockets of those with Tory links. 

'It also made it harder to buy the PPE the NHS needed. Civil servants were besieged by crappy suppliers with political connections - and that made it much harder to buy the right stuff.'

Lord Feldman, a former tennis partner of David Cameron, referred three businesses to ministers before they were given untendered contracts using a 'VIP fast lane'.

Lord Feldman, a former tennis partner of David Cameron, referred three businesses to ministers before they were given untendered contracts using a 'VIP fast lane'.

Mr Hancock, who quit in the summer after having a lockdown-breaching affair with an aide, referred four, while the list of 47 businesses also showed referrals by ex-No10 aide Dominic Cummings, as well as senior ministers including Michael Gove.

Mr Hancock, who quit in the summer after having a lockdown-breaching affair with an aide, referred four, while the list of 47 businesses also showed referrals by ex-No10 aide Dominic Cummings, as well as senior ministers including Michael Gove.

'I was an unpaid volunteer with the DHSC during the early days of the pandemic which involved considering offers sent in from potential sources of PPE or other medical supplies, and passing credible offers on to officials,' Feldman told Politico.

'I had no previous knowledge of SG Recruitment, Skinnydip and Maxima and I have never had any commercial relationship with them or their owners.

'I passed the offers on to officials who considered them in accordance with the DHSC procurement rules.'  

SG Recruitment has since become Sumner Group Health Ltd. Its parent company, Sumner Group Holdings, has been linked to a gold mining operation in Peru run by a family whose senior members have been accused of laundering cash from cocaine trafficking

Sumner Group is chaired by Tory peer Lord Chadlington.

Analysis for Labour last December highlights £50million paid in two deals to Sumner Group Health, linking the subsidiary to to the tax havens of the British Virgin Islands and Dubai.

Mr Hancock referred four companies, Excalibur Healthcare, JD.Com, Monarch Acoustics Ltd and Nine United Ltd. It's understood that he believes that he followed due process in doing so. 

The Government has faced repeated claims of cronyism over its £18billion rush to source PPE and other equipment during the Covid crisis, with ministers criticised for handing lucrative contracts to personal contacts with no experience in the sector.

The former health secretary has previously been censured after he unlawfully failed to publish details of billions of pounds' worth of coronavirus related contracts.

Jolyon Maugham, director of the Good Law Project said: 'The VIP lane funnelled vast sums of public money into the pockets of those with Tory links'

Jolyon Maugham, director of the Good Law Project said: 'The VIP lane funnelled vast sums of public money into the pockets of those with Tory links'

The High Court made a ruling in February after the Good Law Project took legal action against the Department of Health and Social Care (DHSC) for its 'wholesale failure' to disclose details of contracts agreed during the Covid-19 pandemic.

The former landlord of Mr Hancock's local pub also supplied tens of millions of Covid tests to the NHS after sending him a personal WhatsApp message - despite his company having no previous experience of making medical supplies.

Alex Bourne got to know the Health Secretary while running the Cock Inn in Thurlow, West Suffolk, a few hundred yards from the Conservative MP's constituency home. The pair are also Facebook friends.

He later set up Hinpack, a packaging manufacturer, which is now supplying a distributor contracted by the NHS with two million test tubes a week, as well as around 500,000 plastic funnels for test samples. How much the company is being paid is not yet known.

Mr Cummings denied being involved with  Global United Trading, which secured deals almost £400,000. 

He told Politico:  'This is an admin error. I've not been involved with this company. I would like DHSC and No. 10/Cabinet Office to release any and all documents they hold on the matter concerning me if any exist.'

 

The key players who referred firms for VIP Covid contracts 

Former Conservative Party chairman Lord Feldman: 

Lord Feldman was advising Matt Hancock at the start of the coronavirus pandemic in March - a testing firm handed a contract following a meeting attended by the two men is now being advised by Lord Feldman's PR firm where he is managing partner

Lord Felman was responsible for three companies being referred to the VIP PPE contracts scheme 

Lord Felman was responsible for three companies being referred to the VIP PPE contracts scheme. 

Maxima Markets was given a contract worth millions to produce facemasks. There is very little information about the firm. Its website claims it provides advices and connects people to 'emerging markets'.

Its two directors, Richard Adley and Majid Sadjadi, also own a company that provides investment banking services to multinationals and companies. 

Lord Felman also referred SG Recruitment to provide hand sanitizer. SG Recruitment has since become Sumner Group Health Ltd. 

Its parent company, Sumner Group Holdings, has been linked to a gold mining operation in Peru run by a family whose senior members have been accused of laundering cash from cocaine trafficking

Sumner Group is chaired by Tory peer Lord Chadlington.

Thanks to taxpayers, the firm's first PPE contract, for £23.8million, was awarded on April 28 – at least 18 months after Chadlington had joined Sumner Group Holdings as chairman. The second, for £26.1 million, followed a month later.

The firm says its profit is modest, but it is impossible to tell from publicly available information. It ended the last financial year before the pandemic £376,000 in debt.

After it won a £12.9 million contract to provide hand sanitizer, one of the other firms put forward by Feldman, fashion firm Skinnydip, saw its finances jump from a loss of £955,000 in 2019 to a profit of £4.1 million in 2020. 

Former Health Secretary Matt Hancock 

Matt Hancock was responsible for four companies being referred to the VIP contracts scheme

Matt Hancock was responsible for four companies being referred to the VIP contracts scheme

Matt Hancock was responsible for four companies being referred to the VIP contracts scheme. 

One of them was Excalibur Healthcare Services, a medical company run by a Labour donor that was asked to provide ventilators. 

The firm charged £135 million, or £50,000 each, to supply 2,700 ventilators. Three weeks earlier another company had provided the same model of VG70 ventilator for £8,800, according to the Times.   

The company has extensive experience in the field of healthcare products and also developed a gold standard Covid rapid test earlier this year. 

It is owned via a secretive offshore structure based in the Isle of Man and claimed its charged for ventilators were because of supply at the time. 

Monarch Acoustics Limited, a Nottingham-based manufacturer of office furniture, was awarded a £28.8m contract to supply surgical sterile gowns after being referred by the then-Health Secretary.   

On its website, the firm says it has been active for more than 30 years and it has a  96,000 square foot purpose-built factory in Nottingham.

He also referred JD.com, a massive Chinese e-commerce company headquartered in Beijing. It is one of the biggest firms in China and is a member of the Fortune Global 500.

It is unclear how the Chinese conglomerate aided the UK's pandemic battle, though it is best known for selling electronics, mobile phones, computers, and similar items.

He also referred Nine United Ltd, a family of companies across several sectors that is owned by Troels Holch Povlsen, a Danish businessman and founder of the fashion chain Bestseller.

His son Anders Holch Povlsen is CEO and sole owner of Bestseller, which includes Vero Moda and Jack&Jones.

He is also the largest shareholder in ASOS, and second-largest in German internet clothing retailer Zalando. He is also the largest individual private landowner in the UK.

Former Cabinet Office Minister and current Secretary of State for Housing, Michael Gove

Michael Gove referred Meller Designs, a firm run by Conservative donor David Meller, to the VIP lane

Michael Gove referred Meller Designs, a firm run by Conservative donor David Meller, to the VIP lane 

Michael Gove referred Meller Designs, a firm run by Conservative donor David Meller, to the VIP lane.

The government awarded two contracts to Meller Designs Limited in June 2020 for the supply of hand sanitiser and face masks. 

The initial contract was worth £2.6 million, while the second was valued at £79.2 million. 

They were in addition to a £65.8 million deal for face masks given to the firm in July 2020. Another contract saw the company get £1.1 million contract for the supply of hand sanitiser. 

The huge contracts saw the firm declare record profits this year.  

The co-owner of the firm, David Meller, has donated nearly £60,000 to the Conservatives since 2009.

He also donated £3,250 to Michael Gove's unsuccessful leadership campaign in 2016.

Gove also referred a Chinese company to the VIP scheme that supplied the government with goggles which expired before they could be used. 

The goggles were supplied by Liaoning Zhongqiao Overseas Exchange Co Ltd. 

Former Downing Street Chief of Staff Dominic Cummings

According to the information published today, Dominic Cummings referred firm Global United Trading to the scheme

According to the information published today, Dominic Cummings referred firm Global United Trading to the scheme 

According to the information published today, Dominic Cummings referred firm Global United Trading to the scheme. 

The former government advisor is said to have aided the firm which was later awarded two contracts worth almost £800,000. 

However, he told Politico: 'This is an admin error. I've not been involved with this company. I would like DHSC and No. 10/Cabinet Office to release any and all documents they hold on the matter concerning me if any exist.'

Not much is known about the firm, which doesn't have a website. It is registered in Hove and counts a Sonja Silmbrod as a director. 

Ms Silmbrod is listed as the Organisation Manager of Dolly & Dotty, a clothing firm which says it creates 'vintage inspired fashion with a modern flattering fit'.

Minister of State at the Cabinet Office Lord Agnew: 

Lord Agnew, a minister at the Cabinet Office and the Treasury, referred Euthenia Investments

Lord Agnew, a minister at the Cabinet Office and the Treasury, referred Euthenia Investments

Another firm that landed a lucrative contract was Euthenia Investments, run by 23-year-old Sabia Mokeddem, who had set up her company seven months earlier.

Despite having no experience in supplying medical equipment, the investor from Lyon, France, was given £880,000 to supply 55,000 coveralls, after being referred by Lord Agnew. 

The self-confessed party girl was paid almost half a million pounds upfront, although she said her cut of the deal was just 'pocket money'.

She told the Mail she acted as a go-between for a wholesaler in Hong Kong and has since completed delivery of all the coveralls, priced at £16 each. Miss Mokkedem said the coveralls cost £11 before the pandemic – but they charged £16 as market demand and rising cargo costs pushed up prices.

Defending the Government's procurement drive, she said the checks had been stringent and she was asked to provide a range of documents including test reports for the product and details on the factories used.

But the financial trader, who lives in central London, appeared to ridicule the Government's strategy to fight the pandemic.

In a brazen confession, she revealed she attended raves with over 200 people during the first national lockdown. 

Another firm that landed a lucrative contract was Euthenia Investments, run by 23-year-old Sabia Mokeddem, who had set up her company seven months earlier

Another firm that landed a lucrative contract was Euthenia Investments, run by 23-year-old Sabia Mokeddem, who had set up her company seven months earlier 

Also referred by Lord Agnew was the firm Worldlink Resource, a Hong Kong based company.

A British businesswoman pocketed millions by brokering deals for PPE provided by the firm.

Zoe Ley, 47, from Marylebone in London, is believed to have helped Worldlink Resource secure two Government contracts worth £258million.

According to a BBC Panorama documentary, Ms Ley acted as a middleman between Worldlink and the Department of Health and Social Care.

The former investment banker, who runs a luxury dog food business, brokered the deals through a separate company called Life Partners, which she set up last May.

One contract for protective gowns, shared with another company, was worth £80m while the other was for £178m worth of goggles.

On its website, Worldlink boasts: 'Through our UK representative Life Partners, Worldlink successfully helped the Department of Health and Social Care with sourcing critical supplies of PPE.'

A senior official at the firm said Ms Ley took home '30 per cent of the profits' for acting as a 'bridge' to the UK Government.

Chair of the Intelligence and Security Committee, Tory MP Dr Julian Lewis

Brandology, a luxury packaging company, was referred to the VIP scheme by Dr Julian Lewis MP

Brandology, a luxury packaging company, was referred to the VIP scheme by Dr Julian Lewis MP 

Brandology, a luxury packaging company, was referred to the VIP scheme by Dr Julian Lewis MP. 

The government awarded a £70 million contract for the supply of face masks to the company. 

Company documents show that Brandology had only £46,000 in the bank at the end of its 2019 accounting period, and net assets of just under £450,000. 

Hannah Halstead-Morton and her mother Elizabeth Clabburn are co-directors of the company. 

They are descendants of Hon Peter Charles Baillie, a former army Major who died in 2017 and owned Wootton Hall, a stately pile in the New Forest.

In normal times, it designs and builds products for clients in industries 'such as health and beauty, charities, alcohol and gifting'.

Pre-pandemic, the Lymington-based firm had seven employees and just £45,000 in the bank. However, it was able to secure two PPE deals worth £98 million. 

Conservative peer Baroness Michelle Mone 

Transformed: Michelle has transformed her figure over the years (pictured in 2015)

Conservative peer and lingerie businesswoman Michelle Mone referred firm PPE Medpro

Conservative peer and lingerie businesswoman Michelle Mone referred firm PPE Medpro through the VIP channel.

The company then went on to win contracts worth £200 million. 

PPE Medpro was awarded its first contract for £80.85m to supply 210m face masks

Two weeks later, it secured a second contract, for £122m, to supply 25 million surgical gowns. 

Both contracts were awarded directly by the government without competitive tenders.

One of the company's directors, Anthony Paige, was a former secretary for MGM Media, a company that manages Baroness Mone's personal brand. 

He is also a director of Knox House Trust which is part of the Knox Group run by Mone's husband Douglas Barrowman. 

A lawyer for Mone and Barrowman told the Guadian last December that neither of them had a role in the awarding of the PPE Medpro contracts.   

Former Royal College of Nursing head Donna Kinnair 

The Mail on Sunday can reveal that Dame Donna Kinnair faced an investigation over claims that she had accepted hospitality from financier George Farha while on holiday in Morocco

The Mail on Sunday can reveal that Dame Donna Kinnair faced an investigation over claims that she had accepted hospitality from financier George Farha while on holiday in Morocco

Former Royal College of Nursing head Donna Kinnair referred NKD International Ltd to the scheme.  

The firm changed its name from NKD Pizza International Ltd to NKD International Ltd two days before it was awarded a contract to provide surgical gowns to the NHS.

It is understood Mr Farha, a businessman with experience of supply chains, was approached by the Government for help with the PPE crisis during the pandemic.

The financier told officials he had no experience with PPE but managed to source 10,000 surgical gowns for the NHS. 

Kinnair faced an investigation over her links to Farha and allegations she met Hancock without telling union officials.

A spokesman for Farha said the businessman had been unaware he was on the VIP list. 

A source close to Mr Farha says the businessman lost money on the deal but regarded it as a charitable donation.

The Mail on Sunday previously revealed that Kinnair faced an investigation over claims that she had accepted hospitality from financier Farha while on holiday in Morocco.

She was also accused of holding four meetings with then Health Secretary Matt Hancock without telling RCN officials and for failing to declare earnings from other organisations.

There was shock in June when Dame Donna – who was recruited by the RCN in 2015 to improve its reputation and was later awarded a damehood by the Queen – stepped down from her £197,000-a-year job as chief executive and general secretary.

The 47 firms handed VIP Covid contracts during the pandemic 
Supplier Source of referral Actual referrer
Aiya Technology GCF COVID-19 Enquiries mailbox, Cabinet Office Matt Hall, Baringa
Aventis Solutions Ltd NHS E&I Office of Dr Emily Lawson
Ayanda Capital Ltd NHS Shared Business Services Darren Blackburn, Cabinet Office
Blueleaf Ltd Keith Lincoln NHS E&I GCF COVID-19 Enquiries mailbox, Cabinet Office
Brandology Ltd Dr Julian Lewis MP Office of Penny Mordaunt MP
Cargo Services Far East Limited Andrew Percy MP Matt Hancock MP
CCS McLays Ltd Steve Brine MP Allan Nixon, DHSC
Community Pharma Co. Ltd Office of Esther McVey MP Office of Esther McVey MP
Crisp Websites Ltd trading as Pestfix Office of Steve Oldfield, DHSC Nick Dawson, NHS E&I
Euthenia Investments Ltd Office of Lord Agnew Office of Lord Agnew
Excalibur Healthcare Matt Hancock MP Jonathan Marron
GBUK Ltd Preeya Bailie, NHS E&I Not available
Global United Trading Dominic Cummings Steve Oldfield, DHSC
Headwind Industrial (China) Ltd Liupsco Mihailovszki, SIT Budapest Liupsco Mihailovszki, SIT Budapest
Hotel Logistics Ltd SCCL Not available
Ideal Medical Solutions Ltd SCCL Not available
Invisio Ltd SCCL PPE Buy Team
JD.com Matt Hancock MP Jonathan Marron
KPM Marine Ltd Office of Dr Emily Lawson Office of Dr Emily Lawson
Liaoning Zhongqiao Overseas Exchange Co Ltd Office of Chancellor of the Duchy of Lancaster Office of Chancellor of the Duchy of Lancaster
Maxima Markets Ltd Lord Feldman Lord Feldman
MDS Healthcare Ltd Associated with large donation Not available
Medicom Healthcare Holding David Reed, FCDO GCF COVID-19 Enquiries mailbox, Cabinet Office
Meller Design Ltd Office of Chancellor of the Duchy of Lancaster Office of the Government Chief Commercial Officer
MGP Advisory Ltd GCF Commercial Policy Team GCF COVID-19 Enquiries mailbox, Cabinet Office
Monarch Acoustics Ltd Matt Hancock MP Matt Hancock MP
New Asia Logistic Services PTE Ltd Dr Andrew Swift Office of National Medical Director
Nine United Ltd Matt Hancock MP Jonathan Marron, DHSC
NKD International Limited Dame Donna Kinnair, RCN Jonathan Marron, DHSC
P14 Medical Ltd trading as Platform 14 Dr Ian Campbell, Innovate UK Richard James, Cabinet Office
P1F Limited Chris Dunn, FCO Chris Dunn, FCO
Pakan Medical Christine Emmett, HS2 Janette Gibbs, Cabinet Office
PPE Medpro Ltd Baroness Mone Office of Lord Agnew
Regal Polythene Ltd trading as Regal Disposables Chris Hall, Cabinet Office Chris Hall, Cabinet Office
Rehear Labs Limited SCCL Not available
Sanaclis SCCL Andy Wood, Cabinet Office
SG Recruitment UK Ltd Lord Feldman Lord Feldman
Skinnydip Limited Lord Feldman Lord Feldman
Summit Medical Ltd SCCL Direct Approach
Tower Supplies Pia Larsen, NHS Richard James, Cabinet Office
Uniserve Ltd Lord Agnew Jonathan Arrowsmith, Cabinet Office
Unispace GCF COVID-19 Enquiries mailbox, Cabinet Office GCF COVID-19 Enquiries mailbox, Cabinet Office
Universal Solutions Trading Ltd Olivia Oates, HMT Allan Nixon, DHSC
Urathon Europe Limited Jane Harrison, SCCL DHSC PPE Buying cell
Visage Ltd COVID-19 Single Point of Contact mailbox, DHSC COVID-19 Single Point of Contact mailbox, DHSC
Worldlink Resource Lord Agnew Office of Lord Agnew
Wuhan Xiaoyaoyao Pharmaceutical Office of Lord Deighton Office of Lord Deighton

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