Mitie sues Ministry of Justice over court cleaning contract
Mitie is suing the Ministry of Justice over what is claims was a botched tendering process for a contract to clean and repair courts and tribunal buildings.
The outsourcing giant has lodged a High Court claim after losing the contract to French rival Engie last month.
Read more: Mitie’s clients hold back on spending until after Brexit and the General Election
Mitie is set to argue that the government took an “unfair and unequal” approach to scoring during the tender and awarded scores that were “manifestly wrong”, the Sunday Times reported.
The company is hoping to claim over £200,000 damages from the government and is calling for Engie to be stripped of the contract.
“This was a rigorous and comprehensive 12-month procurement process which followed EU rules,” said an HM Courts and Tribunals spokesperson.
“At the upcoming court hearing we will be robustly defending our position.”
Shares in Mitie slumped eight per cent on Thursday after the outsourcer warned that clients are currently reluctant to commit to new projects amid ongoing political uncertainty.
Read more: Mitie to continue managing Lloyds Bank facilities until 2024
The company reported an 11 per cent increase in revenue and five per cent rise in operating profit in half-year results last week, while its order book grew one per cent.
Mitie could not be reached for comment.