US government probes Compass food and water deals in Sudan
Compass Group has been dragged deeper into the UN procurement row after the US House of Representatives said it would investigate two food and water deals in Sudan.
The House's Committee on International Relations said it had evidence to suggest that Compass division ESS discussed sensitive bid information with procurement intermediary IHC Services before being awarded the Sudan contracts. "In at least two instances, a field logistics official with a branch of ESS's parent company, Compass Global Transit Centre in Holland, told IHC about bidding information he received from a UN rations contracts officer in Sudan," stated the committee report.
Dresdner Kleinwort Wasserstein analyst Karl Green said the allegations added to the company's mounting problems. "It potentially extends the risk of reputation damage and increases the likelihood that it won't be wrapped up soon," he said.
Sir Roy Gardner has reportedly sped up the replacement of chief executive Mike Bailey. According to media reports, a shortlist has been drawn up and a successor could be in place by February. Compass declined to comment.
