US government probes Compass food and water deals in Sudan

15 December 2005
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.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking