Prison for G4S executives?

police lampThe exposure of G4S and Serco for stealing from the public purse on an industrial scale is symptomatic of privatised Britain. The findings of an initial inquiry that G4S had ‘overcharged’ tens of millions of pounds on electronic tagging contracts for offenders who had moved abroad, died, returned to prison so they were no longer tagged, or had never been tagged in the first place. This was so blatant and so extensive that it cannot conceivably have been due to slip-ups or clerical errors.

Of course it remains to be proven, but if confirmed as expected, this is fraud on the grand scale. Yet the way it has been handled by the government with kid gloves tells a very different tale.

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If proven, G4S executives should face prison for embezzling huge sums of public money

The exposure of G4S and Serco for stealing from the public purse on an industrial scale is symptomatic of privatised Britain. The findings of an initial inquiry that G4S had ‘overcharged’ tens of millions of pounds on electronic tagging contracts for offenders who had moved abroad, died, returned to prison so they were no longer tagged, or had never been tagged in the first place, are so blatant and so extensive that it cannot conceivably have been due to slip-ups or clerical errors. Of course it remains to be proven, but if confirmed as expected, this is fraud on the grand scale. Yet the way it has been handled by the government with kid gloves tells a very different tale.

Why were the two companies given the option of a voluntary forensic audit rather than the Serious Fraud Office being immediately involved at the outset? If a trade union had been found with its hand in the public pocket on a similar scale, would it have been granted the lenient option of a voluntary discovery of the facts? Second, why has it taken so long for the government to notice such rampant cheating at the public expense? Continue reading

Government drive for privatisation shows private sector not fit for purpose

It is a delicious paradox that the one persistent theme in the Coalition’s ideology is privatising everything in the public sector that moves, yet nothing has exposed the inadequacies and incompetences of privatisation so ruthlessly as the Government’s enthusiasm for it.

The highlight at the moment is the Olympics security fiasco caused by mismanagement at G4S private company in failing to meet its contract target to provide 17,500 guards for the Olympic Park. As a result the State has had to step in by providing 3,500 military personnel plus substantial extra police reinforcements (who as a result will not be available for their normal duties in safeguarding the public). A Tory MP on the Commons Public Accounts Committee castigate G4S for charging ‘colossal fees’ for ‘very poor service’. It would be better to nationalise G4S to improve its management capability, lower its charges, and secure reliability of service. Continue reading