Compass Has 2nd Complaint on U.N. Contract 
March 30, 2006
The New York Times
Original Source: http://www.nytimes.com/aponline/business/AP-Britain-Compass-Group.html

LONDON (AP) -- British catering company Compass Group PLC said Thursday it has received a second complaint alleging corrupt activities in some of its contracts with the United Nations.
Compass said it would ''resolutely'' defend itself against the allegations made by Monaco-based ES-KO International against its Eurest Support Services, or ESS, unit.
The statement comes just weeks after Compass said it would fight similar charges made by Swiss-based Supreme Foodservice.
Shares in the caterer, the world's largest, fell 1.3 percent to 229 pence ($3.98) after the announcement.
Newspaper reports said on Thursday that ES-KO International had lodged a claim for more than $350 million against ESS in a New York court on Wednesday.
Compass said in a brief statement to the London Stock Exchange that ''a further U.S. complaint has been issued, but not served.''
''A preliminary review indicates that the damages claimed bear no relation to the value of the U.N. contracts awarded to ESS and the complaint will be resolutely defended,'' it added.
ES-KO said it had no further comment and referred inquiries to a New York-based law firm, which could not immediately be reached.
The U.N. suspended Compass as a registered vendor in October pending the outcome of an inquiry into allegations that ESS improperly obtained confidential information concerning a three-year contract to supply food and water to peacekeepers in Liberia.
Compass, which employs around 400,000 people in more than 90 countries, has said that internal investigations into the contracts between one of its subsidiaries and the U.N. revealed ''serious irregularities.''
However, the company, which provides food and vending services for a range of customers from schoolchildren to the military, said it believed the problems did not extend beyond the behavior of a few individuals and it had taken disciplinary action. It fired three executives last year.
Analysts welcomed the appointment last week of Richard Cousins, the former chief executive of buildings material company BPB PLC, as CEO.
Compass said that Cousins -- well regarded for overseeing growth at BPB until it accepted a takeover bid by French rival Saint Gobain SA in December -- would take over the post from current CEO Michael Bailey on June 1.