Monaghan Mushrooms has denied claims that Asda mushroom supplier Prime Champ has been involved in the exploitation of its workforce.

Irish supplier Monaghan, which is currently in the process of due diligence ahead of a prospective purchase of the Dutch company, said it believed Prime Champ “doesn’t have a case to answer” after a director was brought in for questioning by Dutch authorities last week. “Our position is that Prime Champ doesn’t have anything to answer and I would like to put that record very straight,” said Monaghan CEO Ronnie Wilson.

Wilson also disputed claims the director had been arrested, insisting he was held for questioning and released without charge.

A leading player in the Netherlands fresh produce industry told FPJ that the investigation is still ongoing. He said: “The fact that authorities have taken in employees of Prime Champ for the second time is a massive embarrassment for the firm and all those connected with it across the supply chain.”

Three members of Prime Champ’s staff were arrested and released without charge last year in connection with the exploitation of Polish workers following searches at four of the company’s production sites by inspectors from the Ministry of Social Affairs and Employment. In a statement at the time, the ministry told Dutch newspaper De Telegraaf: “The suspicion is Polish workers are underpaid, work very long days and receive virtually no days off. In addition, they must give back part of their wages for accommodation, meals and insurance.”

However Wilson said neither Monaghan nor its advisers had found any evidence that the claims are true. He also confirmed that Prime Champ employs its workforce directly and “does not employ agency workers, nor operates any form of labour constructions eg. Polish or Bulgarian constructions”, which he said sets it apart from other Dutch mushroom suppliers (by adhering to Dutch, rather than East European standards).

Wilson added that Rabobank has sold its shares in Prime Champ.

He concluded: “We only became involved in Prime Champ last week and our initial impression, and the impression of our employment experts, is that the firm is completely above board in respect of its labour practices.”