An arrest has been made in connection with a criminal investigation by HMRC into a controversial £25 million Covid PPE contract awarded during the pandemic. The company at the center of the investigation, Luxe Lifestyle Ltd, was referred through the Government’s now-infamous VIP Lane, and had no staff, assets, or turnover at the time of the deal.
The contract was awarded following a referral from former Conservative Party Chairman and Minister Greg Hands, who passed the firm’s offer to civil servants after being contacted by Conservative activist Mark Higton via his personal email.
The Good Law Project, which has been investigating the deal, revealed that Karen Brost, the company’s director, was arrested on suspicion of fraud by failing to disclose information, conspiracy to cheat the public revenue, and fraudulent evasion of income tax. Her husband, Tim Whyte, is also under investigation as a suspected shadow director.
According to leaked documents, the contract was listed internally as “Minister Hands/Luxe Lifestyle”, with Higton named as the point of contact. In the same month the referral was made, the Department of Health and Social Care awarded Luxe Lifestyle a £25 million contract to supply gowns and masks.
However, a freedom of information request later revealed that nine million PPE items worth £20 million were labelled “do not supply” by officials, meaning they were never used and have since been destroyed.
The arrest comes five years after Byline Times first highlighted serious concerns about the company’s financial and operational capacity at the time of the award.
The HMRC investigation is ongoing.
