This article was last updated on April 16, 2022
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Security firm G4S offers to refund Ministry of Justice an amount of £24.1 million after admitting that it had inappropriately billed the government for the electronic tagging of offenders over the span of past nine years.
The scandal came to the light when National Audit Office report has disclosed that concerns about practices at the company were made in March by a G4S whistle-blower working at a call centre that handled calls over the firm’s tagging.
An in depth review by the Serious Fraud Office is convincingly suggestive that G4S and rival outsourcing company Serco had wrongly charged the government for electronically monitoring the same offender multiple times, or when the equipment was damaged, or even after the tagging process had completed, or also charged for monitoring criminals who had died.
An internal review that G4S commissioned “has not identified any evidence of dishonesty or criminal conduct by any employee”.
The security firm has admitted that it “wrongly considered itself to be contractually entitled to bill for monitoring services when equipment had not been fitted or after it had been removed”.
“This billing practice … was not consistent with the contract or G4S’s values and the company has apologised to the Ministry of Justice and issued credit notes totalling £23.3 million for amounts incorrectly billed between 2005 and May 2013.
“A further credit note of £0.8 million will be issued for billings for the period from June 2013 to date.”
However, the government has rejected the offer made by G4S and its auditors are currently trying to establish with the security firm the owed amount.
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