G4S pays £109 million to MoJ over electronic tagging scandal

Will Green is news editor of Supply Management
13 March 2014

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13 March 2014 | Will Green

G4S has agreed to pay the Ministry of Justice (MoJ) a total of £108.9 million in settlement over the electronic tagging scandal.

Justice secretary Chris Grayling told Parliament the agreement “recovers in full the money owed to the taxpayer”, but discussions between the Cabinet Office and G4S are ongoing over a programme of “corporate renewal”.

The sum also included £4.5 million to cover overpayments on two facilities management contracts for the courts service, said Grayling, while the Serious Fraud Office was still investigating the firm.

“In the event of criminal charges being brought we would consider whether further sums are due from G4S,” he said.

The move follows a MoJ settlement with Serco in December to repay £70.5 million for its failures in electronic tagging and prisoner escort services.

In November G4S announced an independent review of its tagging contract had “not identified any evidence of dishonesty or criminal conduct”.

Ashley Almanza, G4S group chief executive, said: “The way in which the electronic monitoring contract was billed was not consistent with the contract or the group’s values and we have apologised to the MoJ and the government. We have repaid all amounts overbilled and have implemented significant changes to strengthen contract management and controls and to ensure our business is always conducted in a manner which is consistent with our group values.

“We believe that the conclusion of this matter, together with the actions we are developing on corporate renewal, will enable us to maintain our position as a strategic supplier to government.” 

Meanwhile, G4S has appointed Shaun Carroll as group procurement director with effect from 6 May. The role is new and has been created to “develop a global procurement approach”.






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