24th Jul 2015 12:44
LONDON (Alliance News) - The New Zealand government has stripped FTSE 250-listed outsourcer Serco Group PLC of its contract running the Mt Eden Corrections Facility in the country amid allegations of prisoner mistreatment.
The country's Department of Corrections has taken over the management of the prison from Serco, which was awarded a GBP140 million, ten-year deal to run the prison back in 2011.
New Zealand Corrections Minister Peseta Sam Lotu-Iiga met with Serco's Scott McNairn and Paul Mahoney earlier this week to discuss recent allegations about contraband and incidents of violence in the prison. The allegations include accusations of prisoner mistreatment and organised "fight clubs" between inmates.
Following those meetings, and further allegations made this week, the Department of Corrections took over the running of the facility from Serco.
"I acknowledge MECF is a difficult prison to run because of its remand status and transient prisoner population, but it is important that the public has confidence in our prison system. I believe this is a necessary step while the investigation into the allegations at Mt Eden Prison is underway," Lotu-Iiga said.
Serco shares were up 2.2% to 128.00 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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