It emerged yesterday at a Public Accounts Committee hearing that the Ministry of Justice continued to allow G4S and Serco to bid for new contracts whilst under investigation by the Serious Fraud Office for alleged fraud. Both companies have paid back nearly £200m in total to the government for overcharging for electronic tagging.
Chair of the Public Accounts Committee, Margaret Hodge MP, stated that it was ‘utterly extraordinary’ that the Ministry of Justice was continuing to do business with G4S and Serco whilst they were under investigation for fraud. She said that a statement made by Secretary of State for Justice, Chris Grayling, to the House of Commons had left her with the impression that there would be a ‘pause’ in doing business with these companies while investigations were underway.
Watch the Public Accounts Committee hearing (8 September 2014)
Hodge accuses government of ‘shocking complacency’ over G4S and Serco (The Guardian, 8 September 2014)