Sodexo Food Service Contractor Siphons Cash from Kids and Soldiers while Dishing Up Subprime Food

[Snarkoleptic]

This from the PR Watch Outsourcing Ameria Exposed series...

http://www.prwatch.org/node/12221

For our first profile of America's big 12 outsourcing firms, the Center for Media and Democracy (CMD) focuses on Sodexo, a multinational company based in France that provides food services to schools, college campuses, the U.S. military, and other government entities across the United States. With about $8.8 billion in annual revenues from operations in North America,[1] Sodexo is a primary driver of outsourcing of food services in America.

But Sodexo has taken the low road to profitability.

In 2010, Sodexo was caught fomenting a race to the bottom in food service, by choosing food suppliers based not on quality but based on which supplier could give them the highest cash rebate for the contract. This iced out small local famers and other quality food suppliers in favor of big agriculture and big business that could best engage in the kickback scheme. Reporting by Lucy Komisar for In These Times brought public attention to the practice.

After an attorney general investigation, Sodexo paid an eye-popping $20 million in 2010 to settle claims that it overcharged 21 New York school districts and the State University of New York (SUNY) system for food and facilities services from 2004 to 2009. New York's case led to a "major investigation" by at least three other state attorneys general, and the U.S. Department of Agriculture's (USDA) Office of Inspector General began a nationwide audit in October 2011 for alleged systematic taxpayer fraud by multiple firms.

Sodexo's unethical business practices ensure that low quality foods are the norm.

Most famously, Sodexo was implicated in the British horsemeat scandal earlier this year, when the company found horse DNA in some of its products and withdrew all frozen beef products from its catering operations at 2,300 British schools, care facilities, military bases, prisons, office canteens, and sporting venues.

Much more at the link at the top.

[Wilms]

1. And it's an NPR sponsor. n/t

[Snarkoleptic]

2. Oh, and here's a link to the series kickoff video.

&feature=player_embedded

[dixiegrrrrl]

3. So this is a French company?

We are sending our purchasing dollars overseas to a companiy which we cannot regulate?

wonder how many over seas companies we do that with?

[onethatcares]

4. oh hell yeah,

just wait for the TPP to go into effect.

Hmmmm, chicken from China, it's what for dinner. (I left out the s on what's on purpose)