26th Sep 2013 19:22
LONDON (Alliance News) - The UK Ministry of Justice has provided information on security firm Serco Group PLC to the Serious Fraud Office related to accusations of overcharging on contracts for electronic monitoring of prisoners.
In a response, Serco said it had cooperated fully with an independent audit launched last month when the accusations first came to light. It said it "continues to believe that it has billed in accordance with the contract" and would repay any amount agreed to be due.
Serco Chief Executive Christopher Hyman said: "We are fully cooperating with the Ministry of Justice and remain committed to doing the right thing to resolve their concerns. The investigations are ongoing and we have an agreed process in place to establish the full facts and take any necessary action.
"Our people work hard every day to deliver important public services and will share my concern about these matters. As I have made clear previously, we will not tolerate poor practice and behaviour and wherever it is found we will put it right."
Serco said Thursday's announcement doesn't change a previously announced end of November timescale for the UK government to determine Serco's eligibility for future work.
The UK government and Serco called in police last month to examine claims of fraudulent misreporting of data on the company's contract to transport prisoners to court in London and East Anglia.
The government has threatened to block the company from winning any more government contracts unless it quickly changes and is more open to government scrutiny on any public contract.
Serco shares closed at 551.00 pence apiece Thursday, down 3.00p.
By Tom Waite; [email protected]; @thomaslwaite
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