The Competition and Purchasing Authority (CMA) is examining the relationship between Mitie and the US company PAE, which manages a joint venture for the Department of Defense but also competed for the management of immigration centers at the Department of the Interior in Derwentside, Coutry Durham. and in Heathrow. Shares of Mitie fell more than 10% earlier this month after informing investors that the CMA was investigating the competition, despite the company saying it was expected to be “completely acquitted”. The company appeared to be focusing on the Derwentside contract in its statement, blaming the Home Office bidding rules for its withdrawal from the bid. However, a source said that the researchers are focusing more on a separate competition between Mitty and PAE for the center of Heathrow. Both companies offered the immigration contract until PAE left last year, leaving the way open for Mitte. The Home Office then referred both companies to the CMA, according to the Guardian. The CMA, which is investigating whether there have been any breaches of competition law, is now believed to be examining the wider employment relationship between the companies. Mitie and PAE are partners in a separate consortium called Landmarc, which manages shooting ranges, training and explosives handling facilities for the Department of Defense. Landmarc is one of five companies providing services to the State Department as part of a ρών 1.5 billion framework agreement, which will be renewed in March 2024. CMA officials appear to have stormed Mitty’s office on the 12th floor of the Shard skyscraper in London earlier this month. They seized documents and are considered to be reviewing emails, including those sent by senior staff. The Guardian understands that the CMA has not yet asked for an interview with Mitie’s CEO Phil Bentley. Mitie’s CEO earned 7 2.7 million 20 in 2021, up from εκατο 2 million £ last year, thanks to a 1, 1.1 million cash bonus and a 22 622,000 share prize. A Mitie spokesman quoted the Guardian as saying in a statement that the company had “no reason to respond” and was expected to be “completely acquitted”. “Mitie strongly condemns anti-competitive practices and cooperates fully with the CMA and the investigation,” the company said in a statement. The PAE said on Tuesday that it believed the CMA investigation was “unfounded”, but said it fully complied with the regulatory authority. “Not everything you suggest is really accurate,” he added. An Interior Ministry spokesman declined to comment on whether the ministry had referred the two companies to the CMA. “The Home Office is aware that the CMA has launched an investigation into two suppliers involved in the procurement of Heathrow and Dervenside’s evacuation centers,” said a spokesman. “The investigation has no effect on the current contractual obligations of Mitie’s Home Office. “We are working with the CMA and it would not be appropriate for us to comment further at this stage.” Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk Mitie, based in London, is a major contractor for both the government and the private sector, with facilities such as cleaning, security and waste management. Its latest annual report for 2021 shows that it raised 1 1.1 billion, about 42% of its revenue, from its work for local and central governments. Its contracts include assistance with the operation of Covid-19 test centers for the Department of Health, Accommodation and Airport Maintenance for the Department of Defense and Interior Ministry building security. PAE is based in Virginia and manages a number of US government contracts, including providing power to control NASA’s mission to the Johnson Space Center in Houston, Texas. The Guardian approached the CMA for comment.
