The Commons spending watchdog, the Public Accounts Committee, has uncovered that G4S has been allowed to bid for further government contracts while being investigated by the Serious Fraud Office regarding £110m contracts for cheating the taxpayer over payments for tagging prisoners on probation and for its improper management of invoicing, delivery and performance reporting. Serco is also being investigated by the Serious Fraud Office as well as by the City of London police over two contracts worth nearly £100m, especially in regard to payments claimed for prisoner escorts.
Grayling, the justice secretary, had written in September last year that “we should not award new contracts for the two companies until we have established the facts about both their performance and their corporate behaviour”. The facts have been established: they grossly over-charged for the work done, yet despite Grayling’s denials they are still being allowed to apply for further lucrative government contracts. In today’s culture, driven by this government’s fundamentalist market values, there’s no accountability – it’s always business usual whatever executives or officials have done. Continue reading