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16 July 2013 | Adam Leach
G4S CEO Ashley Almanza is to conduct a thorough review of the security business following a year that has seen it suffer financial and reputational damage as a result of contract problems.
Almanza, who replaced previous chief executive Nick Buckles in May, announced the review days after the world's largest security company was accused of over-charging the Ministry of Justice (MoJ) on an electronic tagging contract.
In addition to this issue, the review will also look at the company's failure to deliver the contracted number of security guards for the London 2012 Olympics, which cost the company £88 million last year.
The company relies on government contracts for around 10 per cent of its revenue, with the value of work it was given in 2012/13 estimated at around £500 million.
Justice secretary Chris Grayling has asked the Serious Fraud Office (SFO) to investigate whether G4S did overcharge, after the security company refused to submit to a forensic audit by PwC, which carried out the original investigation into the contract. Serco, which has also been accused of overcharging, has agreed to the PwC audit and has not been reported to the SFO.
Government CPO Bill Crothers is also conducting an investigation of contracts G4S and Serco hold with other government departments.
G4S is currently conducting its own separate examination of the tagging contract and has pledged to pay back any money found to have been earned from overcharging the taxpayer.