Baroness Mone of Mayfair was given her title by then prime minister David Cameron in 2015. He also appointed Mone as his government’s “entrepreneurship tsar”.
The baroness was stripped of the Conservative whip following revelations about PPE Medpro and is on leave from the House of Lords.
Scottish Green MSP Patrick Harvie called for Mone to step down from the House of Lords, which he said should be abolished.
He said: “Even by the standards of the Lords, this saga has been totally shameful.
“It’s clear that Michelle Mone should resign, but the problem isn’t just her individual choices, it is the system that put her in such a powerful and unaccountable position in the first place.”
Scottish Labour deputy leader Jackie Baillie said that PPE Medpro must pay back the full sum owed.
She added: “At a time of national emergency, they chose to pursue their own self-interest by lining their pockets with taxpayers’ money.”
A Scottish Conservative spokesperson said: “The Conservative Party removed the whip from Michelle Mone when these allegations came to light.”