So this past weekend the BBC posted an exclusive interview they conducted with Baroness Michelle Mone on iPlayer. The purpose? An opportunity to “clear” her name after it was alleged in the press that Baroness Mone and her husband, Doug Barrowman, made money off the pandemic by entering a government Fast Track to supply PPE, a contract worth £202m.
The concern comes from the fact that as a peer Baroness Mone didn’t declare her business dealings with the House of Lords as she was supposed to, the fact she was – by her own admission – able to call Michael Gove, who was in the Cabinet Office at the time and enter a VIP supplier stream, then publicly denied she and her husband had any connection to the company her husband created specifically to trade in the sector, PPE Medpro.
THE INTERVIEW
I am grateful that Baroness Mone’s team have chosen now to do the interview as we fast approach the promise of a general election, hopefully this May. I hope it’s a further chink in the Conservative armour even though Labour as an alternative doesn’t exactly feed me with confidence.
The interview itself was interesting. Filmed in Spain where Mone/Barrowman fled after intense scrutiny from the UK’s investigative journalists, the couple may have been sat next to each other but it wasn’t exactly a 100% united front.
Mone seemed desperate to make it clear that any profit made as a result of the deal (approx. £61m) was not her money but her husband’s. She was also adamant that neither her children nor her were immediately benefiting from that money despite it being put in a trust by her husband where she and both their children would benefit eventually. Her husband helpfully made that point himself which made me laugh. There were a few instances where Mone attempted to distance herself where Barrowman brought her back in.
There was also a couple of times where Barrowman laughed incredulously such as when the journalist conducting the interview, Laura Kuenssberg, asked if the money had been used to buy a yacht. Mone was quick to say the yacht was not hers and Barrowman laughed at the question. He smirks a few times during the conversation which could have been nerves but felt more like arrogance.
Moan also spent time pointing fingers, mainly at the government. At one point, she blames them for her not declaring the potential conflict of interest (apparently they told her it wasn’t necessary) and she goes on to say that it would have been helpful if the government had publicly rebuffed Moan/Barrowman’s initial position that they weren’t involved with PPE Medpro as the government allegedly knew from the start (Make it make sense, Baroness Mone).
Ultimately, the couple feel scapegoated. Despite the fact they both have decades of business experience between them they don’t see what they did wrong and blame their denial of their involvement on trying to protect their children from the press, a message interestingly repeatedly shared by Mone. Maybe to paint her as a woman dedicated to her family? A kind of cheap shot especially as it’s presented that she – not they – were interested in shielding their family unit.
Honestly, Mone/Barrowman are business people and anyone and everyone who provided any medical supplies stood to make a profit. It’s the nature of capitalism. Really, citing ignorance for their current position is actually a little insulting not only to the general public but to themselves as successful, knowledgeable business people. Who misses conflict of interest??? However, I understand that people are enraged by the fact that allegedly the PPE wasn’t fit for purpose and the pandemic affected everyone so profoundly that there is a lot of emotion connected to such a harrowing time in our collective history.
However, there are valuable lessons that I think people shouldn’t miss in this conversation especially if you run a business.
THE LESSONS
LESSON 1: Not in the market you want to access? Get a partner.
Barrowman explained that PPE Medpro didn’t exist prior to the pandemic and he went on to form a partnership with two other companies to deliver the service to the government. Don’t be afraid to form partnerships if you can truly see an opportunity.
LESSON 2: Move to Isle of Man
Barrowman – “essentially” as he puts it – lives on the Isle of Man, well when he’s not in self imposed exile in Spain as he is now. Isle of Man is a tax haven in a similar way to Ireland and the Cayman Islands. Many businesses and individuals are known for storing their funds there to maximise their profits. Basically, they’re not paying tax. Even though people can be angry about the practice of not paying taxes in a home country it’s not actually illegal. Moving to a tax haven is extreme but launching a company in those spaces could be an option.
LESSON 3: Put assets into a trust
This is the biggest takeaway from this interview and landed harder for me as I look to set my plans for financial building in 2024. As I look at how to set my children up for financial buffering, trusts have been a real consideration.
Benefits to a family trust include asset protection, reduction on estate taxes, and safeguarding assets from creditors. Now, before going ahead, I should highlight that what I’m saying is not financial advice, nor am I going into the real depth into everything, I recommend you always seek a specialist. Here is an article from The Telegraph that I think is quite accessible when explaining Trusts
What I am saying is that Barrowman has demonstrated how he’s leaving a legacy for his children and potentially his future grandchildren. These aren’t lessons taught in school and, if executed properly, could strengthen your family’s wealth building position.
In my network, we’re just starting to galvanise our necessary plans to start fortifying our families financially. This is enabled by the way information is so readily accessible in a way that was never accessible to our parent’s generation. I also find mot everyone is willing to share where they’ve got their information from, which is why I feel it’s important to take note when gems are revealed, no matter the context.
You can find out more about Trusts on the .gov website
