Security firm G4S has agreed to repay the money it overcharged the Ministry of Justice (MoJ) for the electronic tagging of some convicted criminals allowed out on licence.
The security firm has agreed to pay the government £108.9 million plus VAT after an audit revealed that G4S had overcharged by billing the Ministry of Justice for prisoners who were still in prison, had completed their sentences or who were living overseas; or who, in some cases, were dead.
G4S is currently blacklisted as a result by the government and is unable to submit tenders for any further work funded by the taxpayer. The company had previously agreed to repay just 25% of the money it had obtained by overcharging for its electronic tagging services.
However, G4S has now agreed to repay the full amount overcharged to the MoJ.
Another security company who provided electronic tagging services to the MoJ was also found to have overcharged.
Last year Serco repaid £68. 5m plus VAT for wrongly overcharging the Ministry of Justice for its services.
Prisoners who are allowed out of prison on licence are electronically tagged and have conditions imposed as part of the licence. These may include keeping to a curfew or avoiding the area where a victim of their crime may live.