Catering firm chief suspended in contracts probe

Catering giant Compass today suspended the chief executive of its Ireland and UK divisions as it investigates how United Nations contracts were awarded.

Shares in Compass dropped 7% after the company suspended Peter Harris, who also heads operations in the Middle East and Africa.

In a statement, Compass said it has instructed law firm Freshfields to investigate the relationship between its Eurest Support Services (ESS) subsidiary, the United Nations and IHC – a supplier to the UN.

The move comes less than a fortnight after Compass confirmed that ESS was co-operating with authorities in a wide-ranging investigation into UN contracting procedures.

Revenues from contracts with the UN represented less than 0.5% of Compass’s turnover of €17.4bn last year.