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G4S and Serco withdraw from rehab competition

In the light of today's developments, the Ministry of Justice said both G4S and Serco have decided to withdraw from the competition for rehabilitation services.

This means that neither company will play a role as a lead provider of probation services in England and Wales in this competition.

G4S and Serco have decided to withdraw from the MoJ competition for rehabilitation services. Credit: Press Association

The Government said it has left open the possibility of either supplier playing a supporting role, working with smaller businesses or voluntary sector providers.

Unlike Serco, G4S has not yet agreed a position on repayment over the overcharging fiasco, although discussions are continuing.

G4S and Serco will have 'no direct role' in tagging

Management of these services, which are now operated by G4S and Serco, will transition to Capita by the end of the current financial year.

Under these arrangements, Capita will be using the systems and equipment of G4S and Serco, but the two companies will no longer have a direct role in delivering the service on the ground.

– Justice Secretary Chris Grayling


G4S and Serco to lose electronic tagging contracts

Private security giants G4S and Serco are to be stripped of all responsibilities for electronically tagging criminals following an overcharging scandal.

Electronic monitoring contracts will be handed over to rival firm Capita on an interim basis at the end of the financial year, Justice Secretary Chris Grayling said.

Capita is in the running to take on the contracts permanently.

G4S and Serco apologise for overcharging fiasco

Security firms G4S and Serco have apologised for overcharging the Government by millions of pounds on contracts for tagging criminals.

The Serious Fraud Office (SFO) has opened a criminal investigation after it emerged G4S and Serco overcharged the Government for tagging offenders, some of whom were found to be dead, back in prison or overseas.

G4S Chief Executive Ashley Almanza answers questions in front the Public Accounts Select Committee at the House of Commons Credit: PA Wire

G4S chief executive Ashley Almanza admitted the company failed to "tell the difference between right and wrong" when dealing with its electronic monitoring contracts and apologised to the taxpayer.

The chairman of Serco told MPs that it was "ethically wrong" that his company also overcharged the Ministry of Justice.

Yesterday, the Government rejected a £24 million offer from G4S to settle the row with officials vowing to "pursue all possible avenues" to recoup more taxpayers' cash.

Govt promises refund for taxpayer on G4S overcharging

Taxpayers will get "a refund" on the £24 million G4S wrongly charged the Government for monitoring offenders, according to the Ministry of Justice (MoJ).

An MoJ spokesman said it was still working with the firms and the independent auditors to work out "what the final sum will be".

The head of G4S is due to appear in front of MPs at the public accounts committee later today:

The Secretary of State has been clear: we are determined to secure a refund for the taxpayer.We have taken appropriate legal advice and will pursue all possible avenues. This matter is now the subject of a criminal investigation.

We are not able to comment further at the current time. We will make a further statement when it is appropriate to do so.

– Ministry of Justice Spokesman

Uninstalled monitor for offender cost Govt almost £16k

A private security firm raked in almost £16,000 for a monitoring system that was not even installed, accountants found.

A £2 million audit into the private security firms the Government uses found:

  • Serco charged and received £15,500 for an uninstalled monitoring unit for nearly five years.
  • G4S netted nearly £4,700 over a three year period for a botched monitoring job.
  • Serco billed the MoJ on four separate occasions for the same tag as the offender was under multiple supervision orders.
  • There was no evidence G4S had overcharged on any other public service contracts.


G4S to face tough questions from MPs on overbilling

MPs are preparing to grill the group chief executive of G4S over the £24 million they admitted overcharging the Ministry of Justice (MoJ) for electronic monitoring of offenders.

Private security contractors G4S had already damaged their reputation by their poor performance at the Olympics. Credit: PA

G4S and fellow contractor Serco are the subject of a criminal investigation by the Serious Fraud Office (SFO) over the way they operated the contracts.

The Government rejected the private security firm's offer to repay the £24 million yesterday as officials vowed to "pursue all possible avenues" to recoup taxpayer cash.

G4S chief Ashley Almanza said the offer was "an important step in setting this matter straight" and restoring trust.

Government rejects G4S credit repayment offer

The Government has rejected an offer from security firm G4S to repay the £24m it owes for overcharging in credit notes.

Officials turned down the settlement and say they will "pursue all possible avenues" to recoup more taxpayers' money.

A Ministry of Justice spokesman said it was still working with the firms and the independent auditors to work out "what the final sum will be".

"The Secretary of State has been clear: we are determined to secure a refund for the taxpayer.

"We have taken appropriate legal advice and will pursue all possible avenues."

G4S apologises for 'unacceptable' overcharging

Security firm G4S has apologised for overcharging the Government for its provision of electronic tagging services, calling its actions "unacceptable".

The group's chief executive Ashley Almanza said:

The way in which this contract was managed was not consistent with our values or our approach to dealing with customers.

Simply put, it was unacceptable and we have apologised to the Ministry of Justice.

We remain committed to working with the Ministry and the UK Government to resolve this matter and to provide enhanced oversight of service delivery and contract performance.

G4S to repay Government £24.1 million in credit notes

G4S said it will give credit notes worth £24.1 million to the Government after an independent review found the security firm had overcharged for its electronic tagging contracts.

G4S said it has apologised to the Government. Credit: PA Wire

The firm said the review of the contract showed that its justice division had "wrongly considered itself to be contractually entitled" to bill the Government, but stressed there was no evidence of dishonesty or criminal conduct.

Electronic tagging contracts run by G4S and rival firm Serco are currently under a criminal investigation by the Serious Fraud Office.

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