The Justice Secretary Chris Grayling has called in the Serious Fraud Office
to investigate the private security company G4S for overcharging tens of
millions of pounds on electronic tagging contracts for offenders.
Speaking in the Commons yesterday (11 July), Grayling said that over-charging by G4S and Serco is believed to have run to tens of millions of pounds. Bills were charged for tags for people who were in prison, abroad or, in a small number of cases, had died.
He added that that the over-charging began at least as long ago as 2005, but that it possibly dated as far back as 1999.
Andrew Neilson, Director of Campaigns at the Howard League for Penal Reform, said: “we have seen what happens when justice is for sale. G4S, a major provider of services from prisons to probation, is now under investigation by the Serious Fraud Office at the behest of the Secretary of State for Justice. The other largest provider in the sector, Serco, has seen new prison contracts delayed and has volunteered to undergo a forensic audit of its tagging contracts.
“The shocking news of over-charging on electronic monitoring comes at a time when the Ministry of Justice is fixated on the privatisation of the vast majority of work currently done by the probation service. Serco and G4S would both be expected to be major bidders for contracts under current proposals, and whatever ministers claim about the depth of market interest, there is little doubt that without these two companies the aggressive timetable for reform is unlikely to be met."
G4S has said it is not aware of "any indications of dishonesty or misconduct" but is undertaking its own review and would reimburse any overbilling it identified.
Ashley Almanza, G4S chief executive said "We place the highest premium on customer service and integrity and therefore take very seriously the concerns expressed by the Ministry of Justice. We are determined to deal with these issues in a prompt and appropriate manner."
Serco has agreed to co-operate with a forensic audit to establish whether any dishonesty took place. It has also agreed to withdraw from bidding for the £3 billion next-generation tagging contract.
The group's chief executive, Christopher Hyman said "We are deeply concerned if we fall short of the standards expected of all of us."
Source
Speaking in the Commons yesterday (11 July), Grayling said that over-charging by G4S and Serco is believed to have run to tens of millions of pounds. Bills were charged for tags for people who were in prison, abroad or, in a small number of cases, had died.
He added that that the over-charging began at least as long ago as 2005, but that it possibly dated as far back as 1999.
Andrew Neilson, Director of Campaigns at the Howard League for Penal Reform, said: “we have seen what happens when justice is for sale. G4S, a major provider of services from prisons to probation, is now under investigation by the Serious Fraud Office at the behest of the Secretary of State for Justice. The other largest provider in the sector, Serco, has seen new prison contracts delayed and has volunteered to undergo a forensic audit of its tagging contracts.
“The shocking news of over-charging on electronic monitoring comes at a time when the Ministry of Justice is fixated on the privatisation of the vast majority of work currently done by the probation service. Serco and G4S would both be expected to be major bidders for contracts under current proposals, and whatever ministers claim about the depth of market interest, there is little doubt that without these two companies the aggressive timetable for reform is unlikely to be met."
G4S has said it is not aware of "any indications of dishonesty or misconduct" but is undertaking its own review and would reimburse any overbilling it identified.
Ashley Almanza, G4S chief executive said "We place the highest premium on customer service and integrity and therefore take very seriously the concerns expressed by the Ministry of Justice. We are determined to deal with these issues in a prompt and appropriate manner."
Serco has agreed to co-operate with a forensic audit to establish whether any dishonesty took place. It has also agreed to withdraw from bidding for the £3 billion next-generation tagging contract.
The group's chief executive, Christopher Hyman said "We are deeply concerned if we fall short of the standards expected of all of us."
Source
