Posted on 10/21/2005 7:43:23 PM PDT by NormsRevenge
UNITED NATIONS - In a widening scandal over contracts, the United Nations announced Friday that it has suspended a subsidiary of the world's largest catering company as a U.N. supplier until the outcome of an investigation into alleged contract irregularities.
The suspension is the latest blow to U.N. contracting which in recent months has seen the arrest of two Russians by the FBI for alleged money laundering.
U.N. spokesman Stephane Dujarric said Eurest Support Services, or ESS, has been barred from seeking new U.N. contracts until completion of a U.N. investigation into allegations that it "improperly obtained" internal U.N. information about proposals for a contract to supply food to U.N. peacekeepers in Liberia.
British media have reported that ESS obtained confidential documents that helped it outbid competitors for the $62 million contract to supply food and water to U.N. peacekeepers in Liberia.
ESS is a subsidiary of Britain's Compass Group PLC, the world's largest catering company which confirmed two weeks ago that ESS was cooperating with authorities in a wide-ranging investigation into U.N. contract procedures.
Compass said Friday it has suspended two executives while it investigates the contract between ESS and the United Nations.
ESS currently has seven contracts to provide food to approximately 30,000 troops in U.N. peacekeeping missions in Lebanon, the Israeli-Syrian border, Cyprus, Liberia, Ethiopia-Eritrea, Burundi and Sudan.
Dujarric said ESS will be allowed to continue to carry out these contracts subject to the results of the investigation. But he said the United Nations intends to issue new tenders as soon as possible to provide food for various peacekeeping operations.
On a related case, Dujarric said IHC Services Inc., a former U.N. contractor, will remain suspended pending the completion of investigations.
"The U.N. reiterates that it will strictly enforce a zero tolerance policy concerning unethical, unprofessional or fraudulent behavior for U.N. contractors," Dujarric said.
The U.N.'s internal watchdog is reportedly continuing to investigate U.N. procurement activities.
Vladimir Kuznetsov, a Russian diplomat who chaired the powerful U.N. budget oversight committee, was indicted in early September for conspiring with a U.N. officer to launder hundreds of thousands of dollars from foreign companies seeking contracts with the world body. He pleaded not guilty.
Alexander Yakovlev, a Russian who worked in the U.N. contract office, pleaded guilty on Aug. 8 to soliciting a bribe from a company seeking a contract under the U.N. oil-for-food program.
He also admitted his guilt on wire fraud and money laundering charges for accepting nearly $1 million in bribes from U.N. contractors not related to the U.N. oil-for-food program, which is the subject of half a dozen investigations.
The UN corruption we have seem may only be the tip of the iceberg.
The UN is nothing more than an open sewer.
I don't know about you but Im getting awful sick and tired of posting these things about UN corruption this and UN corruption that.
Just wait 'til they control the internet and my "problems" will be over, I reckun. ;-)
Compass operates Canteen Food services in USA. Many Euress people came from Charlotte, NC.
Compass also "caters" what they call "food" in many hospitals here in BC.
If you thought hospital food was bad when they prepared it on site, you should see/smell it when it's all prepared in one big kitchen and trucked all over creation. Hot meals trucked 20, 30, 50 miles. 3 times a day.
I wouldn't wish that slop on Saddam, let alone sick and injured people.
moving food to people in Hospitals seems to be the worst kind of medicine. At MD Anderson - America's best cancer center- in Houston, they serve meals when the patient is hungry 24/7. A person in a tux type outfit will bring a milk shake or steak and eggs to the sick rather than the old fashioned menu. For this reason and others, they have a great success rate.
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