News Summary: Fraud cited at security firm G4S

News Summary: UK gov't calls for fraud investigation of security firm G4S

Associated Press

ALLEGATION: The British government is calling in fraud investigators after auditors found security giant G4S had overcharged by millions of pounds on contracts to monitor offenders using electronic tags.

DETAILS: Justice Secretary Chris Grayling said an initial audit by accountants PwC had found that G4S — which ran into trouble providing security for the London Olympics — and another firm, Serco, had charged the government for people they were not actually monitoring. Some offenders they were supposedly monitoring were dead. The overcharging was in the "low tens of millions."

WHAT'S NEXT: The government is reviewing existing contracts with G4S and with Serco. Grayling said Serco had agreed to a forensic audit to determine whether dishonesty had been involved in the overcharging, but G4S had refused. The detailed audit would include examining internal emails between company executives to determine what happened.

View Comments (0)