Compass calls in auditors to probe subsidiary corruption

Compass, the FTSE100 food group, has appointed Ernst & Young as
independent auditors to review the accounts of subsidiary Eurest Support
Services, which supplies food to UN peacekeepers in eight countries.

Compass’ registered auditors are Deloitte, but the group have asked E&Y
to undertake the review after Eurest became embroiled in UN investigations into
corrupt buying practices, the Financial Times reports.

Last week Compass suspended Eurest chief executive Andy Seiwert and another
executive following an internal investigation into the matter.

The suspension followed disclosures of documents indicating that Compass
executives were involved in buying an intermediary company, IHC Services, which
had previously leaked details of UN tenders to Eurest.

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