SFO investigates G4S for 'overcharging millions on government contracts'

Justice secretary tells MPs he has called in Serious Fraud Office to investigate private security firm for overcharging

The Serious Fraud Office has been called in by ministers to investigate the private security company G4S for overcharging tens of millions of pounds on electronic tagging contracts for offenders. The justice secretary, Chris Grayling, said the overcharging included billing for tracking the movements of people who had moved abroad, those who had returned to prison and had their tags removed, and even people who had died.

Grayling told MPs he had made the decision after G4S refused on Wednesday to co-operate with a voluntary forensic audit of their billing practices and to withdraw as a potential bidder for the next generation of tagging contracts worth more than £1bn.

Alongside the embarrassing Olympic publicity G4S attracted recently, albeit publicity which seemingly did little to damage the overall prospects of the company, and the case of Jimmy Mubenga who was unlawfully killed after being restrained by G4S guards we are presented with yet another glimpse into the behaviour of these companies (Serco too) this time accompanied by an outright refusal 'to co-operate with a voluntary forensic audit of their billing practices'.

It would seem to make for uncomfortable reading as it stands, yet when one considers the suggestions that amongst the the government's £220m proposed cuts to legal aid, enough to encourage demonstration as it is, are whispers that Serco and G4S (both being the subject of investigation here) are possible contenders for controversial contracts to provide lawyers in criminal trials there may be room for far more concern.



Further reading:

G4S and Serco overcharged Government 'tens of millions of pounds' for electronic tagging - including bills for dead offenders

G4S probe after tag firms' multi-million overcharging confirmed

Thanks for the OP I knew G4S were scammers and now we have them policing some of our police forces I mean what the hell looks like government won't do anything either as they don't want any trouble typical. It was the police commissioner that made some of the forces G4S privatisation. Why give G4S a security group power I mean they aren't police and have had no training in any situation like our police has. This is so dangerous and will lead to false arrests and violence. Keep safe out there peeps x

Bugger. More clouds on the horizon for both G4S and Serco.

Prison ratings: 'Serious concern' over two private prisons

Two privately-run prisons are among three the government has expressed "serious concern" over, Ministry of Justice (MoJ) ratings have revealed.

HMP Oakwood, run by G4S, HMP Thameside, run by Serco, and the Prison Service's HMP Winchester in Hampshire, were given the lowest performance rating of one.

(just to note for those who might not want to realise after clicking, the link is to a .pdf from www.gov.uk)

That's one, as in it's actually impossible to rate it any lower.

Key:

Rating 4 = Exceptional performance
Rating 3 = Meeting the Majority of Targets
Rating 2 = Overall performance is of concern
Rating 1 = Overall performance is of serious concern

From the .pdf:

Performance is shown in the four domains: Public Protection, Reducing Reoffending, Decency and Resource Management and Operational Effectiveness.Overall performance is graded into one of four bands. These bands are 4: Exceptional Performance, 3: Meeting Majority of Targets, 2: Overall Performance is of concern, and 1:Overall Performance is of serious concern.

I wonder how restricting the rating system is, it might be worth considering the rating from a different perspective: this was a rating of one in a system limited to 4 - 1, that's not a vast range of options. Perhaps 0 could be the like of charging for the care of released or dead offenders... wait a second, why does that idea ring a bell?


Two private prisons among worst three jails, inspectors find - G4S-managed Oakwood and Serco-run Thameside ranked in 'serious concern' category in annual rankings.

Frances Crook, of the Howard League for Penal Reform, said the ratings could provide no more damning indictment of the government's obsession with the privatisation of justice: "Last autumn, the justice secretary hailed G4S Oakwood as an example of what the private sector could achieve in prisons. We agree. The prison, ranked joint-bottom in the country, is wasting millions and creating ever more victims of crime."

After the news yesterday that Richard Morris, head of UK and Irish operations for G4S iss to be replaced with Eddie Aston:

Head of G4S in UK and Ireland resigns

Observers suggest Richard Morris's departure is part of bid to rebuild relationship with government after tagging controversy

G4S, the world's biggest securities services firm, has parted company with the head of its UK and Irish operations as it tries to improve its relationship with the government after the botched Olympic contract and inquiries into the electronic tagging of criminals.

With a third boss now in charge of the UK arm in as many years, there was speculation that G4S would be hoping to begin to improve its key, but damaged, relationship with the government, for which it already runs prisons, border controls and work programmes.

The discovery that G4S and its rival Serco had been charging the government for tagging criminals who were dead, in prison or never tagged in the first place prompted the justice secretary, Chris Grayling, to ask the Serious Fraud Office to investigate both firms earlier this year.

UK boss exits amid G4S tagging inquiry

G4S has parted ways with the head of its UK division in the latest upheaval at the troubled security giant, which is battling to mend its relationship with the Government after a catalogue of woes.

Richard Morris, a 10-year veteran of G4S, had only been regional chief executive of UK and Ireland since October 2012. He got the job after the previous incumbent quit in the wake of the bungled 2012 Olympics security contract.

comes the news that chief executive of Serco, Chris Hyman, is also stepping down:

Serco chief executive stands down after scandal

he chief executive at Serco, a security firm at the centre of an overcharging scandal, has resigned.

Outgoing boss Chris Hyman said the best way for the company to move forward "is for me to step back".

Serco is being investigated by the Serious Fraud Office after claims it had overcharged the government by "tens of millions" of pounds for electronic tags for criminals.

Neither Serco and G4S, both hugely contracted by the government and both notable for suffering a number of public misfortunes admit any wrong doing but it does seems that as investigations proceed the ground could be looking a little shaky.

So, what are the expectations here? Who's betting on the outcome:

A public admission and contrite acceptance of responsibility in defrauding the public on such a gigantic scale and at such a difficult time followed up by a government apology to it's people for not addressing the widespread concerns earlier and a refusal to renew contracts or perhaps even annulment of present contracts all followed up by legal action strong enough to recoup all costs and plainly draw a line in the sand warning all future private companies?

Or a governmental tut-tut and wagging of the finger before grateful acceptance for what boils down to the inconsequential and tired old PR stunt of sacrificial lambs followed by a slap on the wrist all bandaged up with a increase in government contracts?

*Gameshow voicover*

The choice, as they say, is yours!

Nah, not really. 'course not. If you do have something to say though and you want it to be heard you might consider hiring Brian Blessed and just before he steps up to perform, poke him with a stick, tell him you've heard Gordon is dead and that mountaineering is a waste of time. Then, perhaps, his voice and his alone might echo through the piles of money.

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GOV.UK: Press release - Review of government G4S and Serco contracts