Gate Gourmet Faces Investigation

Gate Gourmet Faces Investigation

Those of you who are worried about the catering arrangements on BA, may have further cause for concern.

It is reported that gate Gourmet, the catering company in dispute with 670 dismissed workers and sole supplier to BA, is under investigation over allegations that it deceived British Airways about the cost of catering on its flights.

Nesco, a former supplier to Gate Gourmet, has accused Gate Gourmet of making it sign a contract under which it made payments to the company's European headquarters in Switzerland.

Gate Gourmet received a rebate of £90K for every £3M it paid to the supplier.

Nesco is in dispute with Gate Gourmet over allegations that it was the source of E. coli bacteria found last year in meals destined for BA passengers.

Lawyers for Nesco wrote to Gate Gourmet in December claiming that the contract requiring rebates was a "sham", designed to conceal from BA the true cost of in-flight meals.

Jameel Dada, the managing director of Nesco, said that he was planning to sue Gate Gourmet for £1.4M for payments that he claims have been withheld.

Gate Gourmet said in a statement that it has:

"legitimate, group-wide purchasing arrangements designed to ensure that the group is able to benefit from and centralise its volume purchasing power. All transactions are legitimate and booked and taxed appropriately."

If I were BA, I would be looking for another supplier.