22 March 2006 | Anusha Bradley

UK catering firm Compass Group faces legal action from Swiss competitor Supreme Foodservice, over claims it was "cheated" out of lucrative United Nations contracts.

The complaint against 13 defendants (including Compass) filed in New York this month claims they "engaged in an illegal scheme involving mail fraud, wire fraud and bribery to rig the award of UN contracts for provision of food rations to peacekeeping forces around the world".

Supreme Foodservice claims Compass won UN contracts worth over £350 million between 2000 and 2005 by bribing a UN official.

A Compass spokeswoman told SM a writ had been served regarding "allegations in connection with UN contracting", which the firm would "resolutely defend".

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