Cable: 'Certainly something bad happened' on tagging

Business Secretary Vince Cable said "certainly something bad happened here" after the Serious Fraud Office was urged to investigate G4S following its refusal to co-operate with the Government over the tagging contract scandal.

Mr Cable told BBC Radio 4's Today programme, "The Government has been looking very carefully at how it gets value for money and has judged that there is some overcharging taking place and we are trying to get down to competitive costs".

G4S has a number of Government contracts, including security.
G4S has a number of Government contracts, including security. Credit: David Davies/PA Wire

He said his Business Department was reviewing the contracts it has with private companies - including G4S and Serco - to deliver public services.

Asked whether the scandal casts doubt over the notion of contracting out state activities to private providers, Mr Cable said, "There are lots of success stories that you don't hear about, but where there is bad practice and lack of care then obviously we've got to tighten up".

Advertisement

G4S tagging fraud inquiry

The Justice Secretary has asked the Serious Fraud Office to investigate G4S over its electronic tagging contract after auditors found the security firm and another company had overcharged the Ministry of Justice by "tens of millions of pounds".