G4S probe after tag firms’ multi-million overcharging confirmed

Source: BBC News, July 11, 2013

The justice secretary has asked the Serious Fraud Office to consider investigating G4S over overcharging for tagging criminals in England and Wales. Overcharging by G4S and rival Serco is said to have amounted to tens of millions of pounds. Chris Grayling told MPs some charges were for tagging people who were in jail or abroad, and a few who had died. Serco has agreed to take part in a “forensic audit” of what happened. G4S declined to do so, Mr Grayling said. …He said that an audit had revealed a “significant anomaly in the billing practices” of both companies. Further investigations revealed that some billing related to people who were not actually tagged at all. …

…He said that Serco had agreed to open its books to auditors PriceWaterhouseCoopers who would conduct a forensic audit of what happened, including looking at executives’ emails.

Mr Grayling said: “We put the same proposal for a further detailed forensic audit to take place to G4S. They have rejected that proposal. … The BBC understands that G4S rejected the proposal because it maintained that its own internal review had found no dishonesty….
Related:
Obamacare contractor under investigation in Britain
Source: Sarah Kliff, Washington Post, Wonkblog, July 15, 2013

Review of government G4S and Serco contracts
Source: Gov.uk, Press Release, 11 July 2013