An inquiry has been launched into the conduct of one of Sussex’s biggest companies.

The Ministry of Justice has called in auditors to investigate whether they have been overcharged for electronic tags by two security firms including Crawley-based G4S.

Auditors PricewaterhouseCoopers are to investigate deals signed a deal in
2005 bringing £700 million worth of business for G4S and Serco to provide electronic tagging equipment to moni- tor the movements of criminals.

The two firms had their original contracts extended and are bidding on the new electronic tagging deals with the justice department expected later this year.

Analysts at City broker Cantor Fitzgerald have estimated the value of new services contracts for the justice ministry has jumped tenfold over four years.

Parliamentary answers revealed that the total amount paid to G4S and Serco for tagging services in 2011/12 was £116.9 million.

A report last year revealed that tagging cost around £13.14 per criminal per day in the UK compared to £1.22 in the US.

Justice Secretary Chris Grayling said the companies had promised to reimburse his department if errors had been made.

Both firms defended their services and said they were co-operating fully with the audit.

The team is to report back on its findings within six weeks.