Compass to cater for its UN scandal investigators

27 November 2007 by
Compass to cater for its UN scandal investigators

Compass Group has won a US Government catering deal despite being investigated by the same administration two years before in connection with a United Nations Peacekeeping scandal.

Compass will, according to The Times, this week announce a deal to supply the US House of Representatives, the very arm of the US Government that questioned last February the validity of an internal report by the caterer into the scandal.

As a result of "serious irregularities in connection with contracts awarded to ESS by the UN" Compass sacked its UK and Ireland chief executive Peter Harris in November 2005 and eventually paid a £40m out of court settlement to bring the affair to a close.

The caterer is due to reveal the contract when it issues a preliminary trading statement for the full year this Wednesday (28 November).

Richard Cousins, who joined Compass in May 2006, has been busy refocusing the catering giant and delivered a strong improvement in margins this May to delight of city analysts.

Under Cousins the caterer has pulled out of loss making contracts and sold it Selecta vending machine business, SSP travel concessions business and Moto roadside services group.

Compass recently retained its contract at Goodwood racecourse but lost a multimillion pound deal at pharmaceutical giant Pfizer's European Research & Development site.

Other wins have seen it keep a £10m annual turnover contract to provide hospitality catering at Chelsea Football Club in London and win Asda.

Compass boss continues drive to refocus business >>

Compass admits to serious irregularities in handling of UN contracts >>

Compass division suspended by UN >>

US Congress has questions over Compass investigation >>
Compass Group suspends UK boss pending UN corruption probe >>
Contract catering round up >>

By Chris Druce

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