Congressional committee seeks more Compass, UN details

By Salamander Davoudiin
February 7, 2006
The Financial Times
Original Source: http://news.ft.com/cms/s/f1140ffe-977d-11da-82b7-0000779e2340.html

A US congressional committee has cast doubt over an internal investigation by Compass into its dealings with the United Nations.
The International Relations Committee has requested more information from the UK catering company about the relationship between Eurest Support Services, a Compass subsidiary; the UN; and IHCServices, a vendor to theUN.
Compass last week released findings of an internal investigation, saying it had found serious irregularities involving UN contracts awarded to ESS,but did not give further details.
A spokesman from the International Relations committee said: The committee is not ready to confirm the accuracy of the internal report produced by the Compass Group.
The committee would like to learn who else at Compass knew of ESS's actions regarding the sale of IHC Services to a group led by Peter Harris.
Our fear is that there is more to this story than was initially acknowledged. Our investigation continues.
Mr Harris, the former chief executive of Compass's UK division, was last year dismissed following the internal investigation.
ESS won a series of contracts to feed UN peacekeepers around the world between 2000 and 2005 but its name emerged last year as a result of a number of separate investigations into corruption at the UN's procurement department.
Compass said of its investigation that it had no reason to believe that these issues extended beyond these individuals, to other parts of ESS, or to the wider Compass group. The UN suspended ESS in October as a registered vendor pending completion of an investigation into allegations about the way ESS won a Liberia contract in 2004. The investigation is ongoing.
Documents were disclosed suggesting that two Compass executives were involved in buying IHC Services, which had previously leaked details of a UN tender to ESS.
Compass has said that it never owned any shares in IHC.
The UK's Serious Fraud Office is still considering whether to investigate.