MAJOR Home Office contractor Mitie is under investigation by the competition watchdog over “suspected anti-competitive conduct” in relation to immigration detention contracts. 

The Competition and Markets Authority (CMA) said today that it was probing the Mitie Group, Mitie Care and Custody and PAE Incorporated entities.

The probe, opened on Tuesday, is looking at whether there was a breach of competition law in the procurement process for two immigration removal centre contracts run by the Home Office. 

Mitie is the largest provider of immigration services in Britain, running two Heathrow detention centres and the Home Office’s new women-only detention centre at Derwentside in County Durham.

The firm was awarded the £166 million contract to run the Durham facility, which replaces Yarl’s Wood in Bedfordshire, last year.

The regulator added that “no assumption should be made at this stage” that competition law had been infringed.

Mitie told shareholders that it had withdrawn from the tendering process for the Derwentside centre because of rules barring one firm from winning both contracts.

In a statement, the company said: “Mitie strongly condemns anti-competitive practices and is co-operating fully with the CMA and the investigation.

“Mitie is confident that it has no case to answer and will be fully exonerated.”

News of the probe follows Mitie boss Phil Bentley being forced to apologise after a series of racist Whatsapp messages among Mitie staff emerged last month. The firm was also accused of failing to act against staff racism. 

Mitie has been awarded 400 public-sector contracts, worth £2.55 billion, since 2015, according to Tussell, which analyses government outsourcing deals.