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Serco says review into UK prisoner contract underway

A Serco flag is seen flying alongside a Union flag outside Doncaster Prison in northern England in this December 13, 2011 file photograph. REUTERS/Darren Staples/Files

LONDON (Reuters) - Outsourcing firm Serco said an internal review into its prisoner escorting contract was underway after the UK government asked police to investigate alleged fraudulent behaviour by some Serco staff working on it.

Serco said on Wednesday that it had established a "specific committee of the board" to oversee the programme and to resolve any issues emerging from the reviews and audits, which are due to be completed by the end of November.

The company said it had hired Lord David Gold, a senior British litigator, to act as an independent third-party member on the committee.

The Ministry of Justice (MoJ) last month said an investigation into the Serco-run prisoner escorting and custodial services (PECS) contract had showed some staff recording prisoners as having been delivered ready for court when they were not - a performance measure for the contract.

(Reporting by Rhys Jones; editing by Sarah Young)