Crawley-based security giant to lose multi-million Government contract

The Argus: Crawley-based security giant to lose multi-million Government contract (Pic: VisMedia) Crawley-based security giant to lose multi-million Government contract (Pic: VisMedia)

A private security giant is set to lose contracts for electronically tagging criminals to a rival firm following an overcharging scandal.

Crawley-based G4S and fellow security firm Serco are set to lose a lucrative contract monitoring convicted criminals with electronic tags..

 Justice Secretary Chris Grayling said today that electronic monitoring will be handed to Capita on an interim basis at the end of the financial year.

Capita is in the running to take on the contracts permanently later in 2014.


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G4S admitted last month to overcharging the Government £23.3 million between 2005 and this year and has issued credit bills to repay the amount. 

The Serious Fraud Office (SFO) has opened a criminal investigation after it emerged G4S and Serco overcharged the Government for tagging offenders, some of whom were found to be dead, back in prison or overseas.

In a written statement, Mr Grayling said: "We have signed a contract with Capita to take over the management of the existing electronic monitoring services on an interim basis.

"This will mean that management of these services, which are now operated by G4S and Serco, will transition to Capita by the end of the current financial year.

"Under these arrangements, Capita will be using the systems and equipment of G4S and Serco, but the two companies will no longer have a direct role in delivering the service on the ground."

G4S and Serco both withdrew from competition for future tagging contracts, which were due to expire at the end of March.

During the interim period, Capita will be subcontracting tagging equipment from G4S and Serco but will take on full responsibility for supply if it wins the contract.

Other preferred bidders include Buddi, Astrium and Telefonica.

Mr Grayling said: "This signals a fresh start for electronic monitoring that brings us a step closer to introducing the most advanced tagging system in the world."

Comments (2)

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2:42pm Thu 12 Dec 13

qm says...

Out-sourcing of this kind is an admission by Government departments that they cannot run a service. If a private company can do it and make a profit (without fraudulent activity), then a Government department can do and save taxpayers money provided they are managed away from administrative bloat!
Out-sourcing of this kind is an admission by Government departments that they cannot run a service. If a private company can do it and make a profit (without fraudulent activity), then a Government department can do and save taxpayers money provided they are managed away from administrative bloat! qm

5:43pm Thu 12 Dec 13

angrymonkey says...

The manages of this dodgy company should be locked up and then tagged for steeling from the tax payers so much .
The manages of this dodgy company should be locked up and then tagged for steeling from the tax payers so much . angrymonkey

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