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| Tagging firm's 'overcharging' probed | Tagging firm's 'overcharging' probed |
| (35 minutes later) | |
| Justice Secretary Chris Grayling has asked the Serious Fraud Office to investigate G4S for overcharging for tagging criminals in England and Wales. | |
| MPs heard that the overcharging by G4S and rival Serco ran to tens of millions of pounds. | MPs heard that the overcharging by G4S and rival Serco ran to tens of millions of pounds. |
| Mr Grayling said the firms charged the government for tagging people who were not actually being monitored. | Mr Grayling said the firms charged the government for tagging people who were not actually being monitored. |
| The bills included tags for people in prison or out of the country, and a small number who had died. | The bills included tags for people in prison or out of the country, and a small number who had died. |
| Serco has separately voluntarily agreed to take part in a "forensic audit" of what happened. G4S was given the same opportunity to co-operate with the government investigation, but refused. | Serco has separately voluntarily agreed to take part in a "forensic audit" of what happened. G4S was given the same opportunity to co-operate with the government investigation, but refused. |
| In a statement to MPs, Mr Grayling said he had further launched a disciplinary investigation into the way the contracts had been managed inside the Ministry of Justice after uncovering evidence that officials knew in 2008 that there were problems with how both companies were billing for tagging. | In a statement to MPs, Mr Grayling said he had further launched a disciplinary investigation into the way the contracts had been managed inside the Ministry of Justice after uncovering evidence that officials knew in 2008 that there were problems with how both companies were billing for tagging. |
| There will also be a wider review of all contracts held by G4S and Serco across Government. | There will also be a wider review of all contracts held by G4S and Serco across Government. |
| "The House will share my astonishment that two of the Government's biggest suppliers would seek to charge in this way," said Mr Grayling. | "The House will share my astonishment that two of the Government's biggest suppliers would seek to charge in this way," said Mr Grayling. |
| "The House will also be surprised and disappointed to learn that staff in the Ministry of Justice were aware of a potential problem and yet did not take adequate steps to address it." | "The House will also be surprised and disappointed to learn that staff in the Ministry of Justice were aware of a potential problem and yet did not take adequate steps to address it." |
| 2004 contracts | |
| Electronic tagging of criminals is a key part of the government's strategy to monitor offenders in the community. The contracts are awarded to private companies who then place the electronic ankle bracelet on the offender or suspect and ensure that their movements comply with their bail or licence conditions. | Electronic tagging of criminals is a key part of the government's strategy to monitor offenders in the community. The contracts are awarded to private companies who then place the electronic ankle bracelet on the offender or suspect and ensure that their movements comply with their bail or licence conditions. |
| Mr Grayling said that current contracts had been awarded in November 2004 and were due to expire shortly. | Mr Grayling said that current contracts had been awarded in November 2004 and were due to expire shortly. |
| He said that an audit had revealed a "significant anomaly in the billing practices" of both companies. Further investigations revealed that the billing related to people who were not actually tagged at all. | He said that an audit had revealed a "significant anomaly in the billing practices" of both companies. Further investigations revealed that the billing related to people who were not actually tagged at all. |
| Mr Grayling said: "It included charges for people who were back in prison and had had their tags removed, people who had left the country, and those who had never been tagged in the first place but who had instead been returned to Court. | Mr Grayling said: "It included charges for people who were back in prison and had had their tags removed, people who had left the country, and those who had never been tagged in the first place but who had instead been returned to Court. |
| "There are a small number of cases where charging continued for a period when the subject was known to have died. | "There are a small number of cases where charging continued for a period when the subject was known to have died. |
| "In some instances, charging continued for a period of many months and indeed years after active monitoring had ceased. The House will share my view that this is a wholly indefensible and unacceptable state of affairs." | "In some instances, charging continued for a period of many months and indeed years after active monitoring had ceased. The House will share my view that this is a wholly indefensible and unacceptable state of affairs." |
| SFO called in | |
| Mr Grayling said officials estimated that the total over-billing was in the "low tens of millions" but it was not clear whether the problems dated back to an earlier 1999 contract. | |
| He added that not only would the government seek to recover the money - but it had taken legal advice on whether to investigate whether the over-billing amounted to dishonesty . | |
| 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 last night. They have rejected that proposal. Given the nature of the findings of the audit work that has taken place so far, and the very clear legal advice that I have received, | |
| I am today asking the Serious Fraud Office to consider whether an investigation is appropriate into what happened in G4S, and to confirm to me whether any of the actions of anyone in that company represent more than a contractual breach." |