Friday, August 12, 2022
HomeBusinessProfits soar for Tory donor Globus Shetland after £94m PPE deal

Profits soar for Tory donor Globus Shetland after £94m PPE deal


Profits soar for Tory donor Globus Shetland as £94m PPE deal sparks accusations of pandemic profiteering


A supplier that made big donations to the Conservative party has reported a near eight-fold rise in profits – sparking accusations of pandemic profiteering.

Globus Shetland’s operating profits rose from £6.7million to £50.7million in the first year of the pandemic, the Daily Mail can reveal, as revenue surged from £60million to £171million, according to accounts for the year ending May 31, 2021 filed at Companies House.

The PPE manufacturer, which makes medical-grade face masks, gave over £365,000 to the Tories between 2016 and 2020.

High demand: PPE manufacturer Globus Shetland, which makes medical-grade face masks, gave over £365,000 to the Tories between 2016 and 2020

High demand: PPE manufacturer Globus Shetland, which makes medical-grade face masks, gave over £365,000 to the Tories between 2016 and 2020

Globus landed a £93.7million contract for PPE from the Department of Health and Social Care (DHSC) in 2020. 

Tory minister Lord Agnew quit last month, concerned the Government paid more than it should have for Covid deals.

Labour MP Angela Rayner said: ‘We know, in a former minister’s own words, that the Government was “paying dramatically over the odds” for contracts that lined the pockets of Tory donors and cronies. Throughout the pandemic this government has allowed for profiteering.’

Data from procurement specialists Tussell shows Globus, run by Icelandic businessman Haraldur Agustsson, the majority shareholder, bagged three Covid deals, worth £108million. 

He was previously a member of the Conservative Leader’s Group, which facilitates access to politicians for party donations.

Globus said: ‘With a long history of supplying the NHS across the UK, it was natural that we would be asked to step up during the pandemic. 

‘We were not part of any Government VIP lane, contracts awarded were part of a competitive selection process and we did not benefit from ministerial involvement.’

The DHSC said: ‘Proper due diligence is carried out and we take these checks extremely seriously. 

‘All offers underwent a rigorous financial, commercial, legal and policy assessment, led by officials from various departments.’

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