29th Apr 2014 05:53
LONDON (Alliance News) - G4S PLC has won a key role in the implementation of the UK government's new programme for the long-term unemployed, The Financial Times reported late Monday.
The security firm is one of six companies selected to provide the Help to Work programme for the unemployed, said the FT, which will sanction claimants if they fail to take part.
The news comes just week after after the British government lifted its ban on G4S bidding for public sector work, with the FT reporting that the contract win suggests that "Whitehall is taking a favourable view towards one of its largest contractors, despite insisting that the company remains under close scrutiny."
The troubled outsourcing company was placed under investigation by the UK government last July, along with rival Serco PLC, with all of their government contracts were placed under review, after details from an audit emerged showing that they had been over-charging on criminal tagging contracts, claiming for people who were dead, who had never been to prison, or never tagged in the first place.
In March, G4S reached a settlement with the government to pay GBP108.9 million, comprising a GBP75.9 million cash payment and GBP33 million in credits for services provided, to settle both the tagging and the facilities management contract issues. Serco agreed a GBP69.5 million settlement on the tagging contract in December.
The Help to Work programme - which is worth a total of GBP300 million over two years - involves providing ?intensive? coaching for the unemployed in six regions including west and east London, the East Midlands and the Southeast. Other companies to win work include Seetec, Interserve and Pertemps.
G4S shares last traded at 238.9 pence per share.
http://www.ft.com/cms/s/0/4f9118a6-ceed-11e3-9165-00144feabdc0.html#axzz30Ag3NBvu
By Alice Attwood; [email protected]; @AliceAtAlliance
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