Catering firm chief suspended in contracts probe
21/10/2005 - 10:23:20Catering giant Compass today suspended the chief executive of its Ireland and UK divisions as it investigates how United Nations contracts were awarded.
Shares in Compass dropped 7% after the company suspended Peter Harris, who also heads operations in the Middle East and Africa.
In a statement, Compass said it has instructed law firm Freshfields to investigate the relationship between its Eurest Support Services (ESS) subsidiary, the United Nations and IHC – a supplier to the UN.
The move comes less than a fortnight after Compass confirmed that ESS was co-operating with authorities in a wide-ranging investigation into UN contracting procedures.
Revenues from contracts with the UN represented less than 0.5% of Compass’s turnover of €17.4bn last year.
