The Competition and Markets Authority (CMA) ‘raided’ the offices of outsource company Mitie, over concerns about alleged anti-competitive behaviour.
The firm’s London premises were reportedly looked according to the Guardian, regarding its reported relationship with US company PAE, in trying to get contracts for immigration removal centres (IRC).
This comes after the CMA launched an investigation into alleged anti-competitive behaviour at the start of the month, which Mitie said it would be “ fully exonerated” from. Its shares also dropped 10 per cent following the announcement.
The two companies have a joint venture for the UK defence ministry, but were trying to win the right to operate Heathrow and Derwentside IRCs, with the home office.
When asked for comment about the raid, Mitie pointed City A.M. to a statement on the London Stock Exchange following the CMA’s decision to launch into an investigation, last month.
It “strongly condemns anti-competitive practices.. is co-operating fully with the investigation”, and “is confident that it has no case to answer and will be fully exonerated.
“Mitie will not be issuing any further announcements in relation to the CMA’s investigation, until its conclusion.”
The company appeared to blame Home Office bidding rules for withdrawing from the process applying for the contract at Derwentside, while according to the Guardian, investigators were looking at competition between the two firms over the Heathrow contracts.
PAE had pulled out of the process in Heathrow, paving the way for Mitie to take it, and leading to the Home Office submitting it to the CMA.