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Serco and G4S “still being paid” by MoJ after electronic tagging scandal (26 June 2015)

Date: 26/06/2015
Duncan Lewis, Legal News Solicitors, Serco and G4S “still being paid” by MoJ after electronic tagging scandal

Analysis of Ministry of Justice (MoJ) data by the Centre for Crime and Justice Studies has revealed that the government is still paying security companies Serco and G4S millions of pounds for electronic prisoner tagging services, despite both companies being barred from running the contract.

The two security firms were the subject of criminal investigations by the Serious Fraud Office, over allegations that they overcharged the MoJ for prisoner tagging services – including allegations that invoicing for prisoners who had died had taken place.

The two companies had to repay nearly £180m to the MoJ as a result of the investigation.

However, The Guardian reports that figures show the two companies are still receiving monthly payments from the MoJ, with G4S being paid a total of £8.7m between March 2014 – when it lost the tagging contract – and February 2015.

Over the same period, Serco was paid a total of £4.5m.

Capita took over the contract from Serco and G4S on an interim basis in April 2014.

Capital was named as one of the new contractors in July 2014, with three other companies sharing the £265m, six-year contract.

Around 100,000 prisoners out on licence are electronically tagged every year.
Next-generation satellite tracking tags will allow the monitoring of dangerous and repeat offenders 24/7.

However, the MoJ agreed that Capita should continue to use the older G4S/Serco electronic tagging equipment until the first satellite tracking tags were expected to be available – by the end of 2014.

Capita has faced continued delays in the development of its satellite tracking tags, however – and as a result the contracts with G4S and Serco to use their equipment have been extended.

It is reported that the two companies were given a 15-month extension earlier in 2105 – with a further possible extension when the contracts expire in 2016.

Richard Garside from the Centre for Crime and Justice Studies said:

“The ministry is continuing to pay G4S and Serco for the supply of electronic tagging equipment months after the contracts should have been terminated because the timetable for the next generation of satellite tagging technology has slipped and slipped.

“The ministry needs to clarify as soon as possible when payments to G4S and Serco will end.”

A spokeswoman for the MoJ said:

“G4S and Serco no longer deliver electronic monitoring services.

“We have always been clear Capita would continue to use their systems until new tags were developed – which gave taxpayers value for money and put public safety first.”

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