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Rishi Sunak said he was “shocked” to read allegations about Baroness Mone, adding it was “absolutely right” that she is no longer attending the Lords.
The peer is taking a leave of absence amid claims she benefited from a firm she recommended for a Covid contract.
Asked about the allegations at Prime Minister’s Questions, Mr Sunak said she “no longer has the Conservative whip”.
A spokesperson for the peer said: “Baroness Mone’s legal team are dealing with this witch-hunt situation.”
Downing Street said not having the Tory whip was an automatic consequence of her requesting a leave of absence from the House of Lords.
Baroness Mone has been linked to PPE Medpro, which won government contracts worth £203m to supply masks and medical gowns during the pandemic, after she recommended it to ministers.
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An investigation in the Guardian based on leaked documents alleged Baroness Mone had financially benefited from the company.
At PMQs, Labour leader Sir Keir Starmer asked Mr Sunak: “How did his colleague Baroness Mone end up with nearly £30m of taxpayers’ money in her bank account?”
Mr Sunak told him: “The one thing we know about him is he is a lawyer, he should know there is a process in place. It is right that that process concludes. I hope that it is resolved promptly.”
He added: “Like everyone else I was absolutely shocked to read about the allegations.
“It’s absolutely right that she is no longer attending the House of Lords and therefore no longer has the Conservative whip.”
Baroness Mone’s spokesman said on Tuesday she was taking a leave of absence from the House of Lords “in order to clear her name of the allegations that have been unjustly levelled against her”.
The Lords’ standards watchdog is investigating the peer over her alleged involvement in procuring contracts for PPE Medpro, although this has been paused “while the matter is under investigation by the police or another agency as part of a criminal investigation”.
Baroness Mone has consistently denied any “role or function” in the company, and her lawyers have previously said she is “not connected to PPE Medpro in any capacity”.
The government has committed to releasing documents to MPs surrounding the award of contracts to the PPE Medpro firm, after Labour won a vote in the Commons on Tuesday.
