Electronic tag firms overcharged UK govt

Written By Unknown on Kamis, 11 Juli 2013 | 22.34

THE British government is calling in fraud investigators after auditors found security giant G4S had overcharged by millions of pounds on contracts to monitor offenders using electronic tags.

Justice Secretary Chris Grayling said he was asking the Serious Fraud Office to investigate after G4S refused to take part in a forensic audit of its contract.

He said an initial audit had found that G4S and another firm, Serco, had charged the government for people they were not actually monitoring - and in a small number of cases for offenders who had died.

Grayling said the overcharging was in the "low tens of millions," went at least as far back as the start of the current tagging contracts in 2005, and could have begun as long ago as 1999.

He said Serco had agreed to a forensic audit to determine whether dishonesty had been involved in the overcharging, but G4S had refused.

The detailed audit would include examining internal emails between company executives to determine what happened.

Grayling told MPs in the House of Commons he felt "astonishment that two of the government's biggest suppliers would seek to charge in this way".

"The billing practices in question were clearly unacceptable and the government will take all necessary steps to secure a refund for the taxpayer," he said.

He said the government was reviewing all its existing contracts with Serco and with G4S, one of the world's biggest private security firms.

The government paid G4S more than STG394 million ($A647.07 million) in the 2012-2013 financial year.

The fraud investigation is the latest bad news for G4S.

Last year, Britain had to call in thousands of troops to help with security at the London Olympics after G4S acknowledged it couldn't provide the 10,400 guards it had been contracted to deliver.

This week, prosecutors said they were considering criminal charges over an Angolan man who died after being restrained by G4S guards during deportation from Britain.


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