The UK Government is suing a company that supplied it with personal protective equipment for £122million plus costs.
PPE Medpro won contracts through the so-called VIP lane in 2020, after being recommended by Tory peer Baroness Mone.
The government is attempting to get its money back on one of the deals in the High Court, claiming the medical gowns supplied "did not comply with the specification in the contract".
PPE Medpro said it would "rigorously" defend the claim.
The BBC says the company accused the government of a "cynical attempt" to recover money from suppliers who had acted in good faith and to contract specifications.
The government says that, along with the £122million contract, it has so far spent £6.9million on storage costs for the kit and each week it costs over £61,000 to store the gowns. It estimates the cost to dispose the gowns would be £4.7million.
Legal documents
According to legal documents seen by the BBC, the government claims "the gowns did not comply with the specification in the contract" and could not be used in the NHS. It also accuses PPE Medpro of a "breach of contract and unjust enrichment".
A Department of Health and Social Care (DHSC) spokesperson said: "We can confirm that we have commenced legal proceedings in the High Court against PPE Medpro Limited for breach of contract regarding gowns delivered under a contract dated June 26, 2020."
The government revealed last year that Baroness Mone was the "source of referral" for PPE Medpro getting a place on the so-called VIP lane for PPE offers coming from ministers, officials or peers.
In other words, she recommended the company.
VIP lane offers were treated with greater urgency and were 10 times more likely to result in contracts than offers being made outside this route.
Baroness Mone contacted Lord Agnew, the Cabinet Office minister, about the firm and he directed the offer to the VIP lane.
Leave of absence
She is currently taking a leave of absence from the House of Lords, meaning she will not sit as a Conservative peer. She says she wants to clear her name amid allegations she benefited from the contracts.
In December 2020, lawyers for Baroness Mone said she "had no role or function in PPE Medpro, nor in the process by which contracts were awarded to PPE Medpro".
The House of Lords commissioner for standards has launched an investigation into her "alleged involvement in procuring contracts for PPE Medpro".
But the commissioner's website says his investigation has been paused while the matter is investigated by the police or another agency as part of a criminal investigation.
FTSE 100
The UK's top share index, the FTSE 100, was down 45 points at 7,315 shortly after opening this morning, following yesterday's 29-point gain.
Brent crude futures were 0.19% lower at $79.65 a barrel.
Companies reporting today
- Full-year results: Redx Pharma