Tag Archives: G4S

UK’s biggest prison now on verge of full capacity

The biggest prison in the UK should reach full capacity pretty soon, with construction work on track to end this month and allow the opening of the third and final wing. The first prisoners were moved to HMP Berwyn in Wrexham on 28 February and into Bala wing, with this wing and its cousins collectively designed to house 702 prisoners.

The second wing, designated Alwen, opened in May, with Ministry of Justice (MoJ) bosses confirming the third and final wing, Ceiriog, is on schedule to open this month, bringing the total capacity of adult male offenders to 2,106 – 500 inmates more than the biggest current prison in England and Wales was built to hold.

The majority will be Category C prisoners, meaning that they’ve been assessed as having a lower likelihood of escaping, though some Category B prisoners could also be accommodated.

Governor Russ Trent has explained that his emphasis is on rehabilitation, with staff calling the prisoners ‘men’ who will have ‘rooms’ rather than cells.

The construction of HMP Berwyn began in May 2015 and will cost £250 million.

HMPBerwyn

Reductions in overcrowding

The Government has pledged to spend £1.3 billion on new prisons. After the riots in HMP Birmingham last year, Justice Secretary Liz Truss said the new prison in Wales ‘will help to reduce overcrowding across the estate’. Nine more new prisons are expected to be built, with five set to be opened by 2020.

Binns Fencing won the order to supply and install almost 2 km of 5.2 metre-high prison-standard secure perimeter fencing for the Wrexham ‘super prison’. Manufacturer Zaun supplied the MoJ-approved prison posts and fencing mesh.

Binns has proposed a new model of perimeter security and PIDs procurement and delivery, whereby it offers a single point of contact for the complete perimeter security package, providing greater opportunity for innovation, in turn reducing complexity and the need for managing multiple contractors.

The company believes this could offer significant cost savings on PIDs cable installation as well as both contract and project management costs.

HMP Berwyn is already anticipated to be the cheapest prison to run per prisoner in England and Wales.. It’s expected to run at £14,000 per head per year, including overheads, compared with £40,170 at HMP Parc in Bridgend, which was built under the Government’s Private Finance Initiative and is operated by G4S.

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SSAIB recruits manned services assessors ahead of business licensing

Inspection company the SSAIB – which is celebrating its 20th Anniversary as a fire, security and telecare certification body – has recruited two new manned services assessors to join the team headed by scheme manager Stephen Grieve.

The duo’s appointments come in the context of future regulation through mandatory business licensing – the most significant factor affecting the security industry since the SIA (Security Industry Authority) introduced individual licensing under the Private Security Industry Act 2001.

Andrew Osbourne

Andrew Osbourne

Andrew Osborne joins the SSAIB to cover the south of England. He brings with him an extensive and wide-ranging 40-year track record of business experience including security screening and training, Health and Safety management and risk assessments with companies such as G4S (with whom, for example, he conducted site and remote audits on static guarding, maritime, aviation, rail and events operations including employee screening, training and licensing).

Osbourne’s appointment to the team is mirrored by David Taylor’s recruitment to cover the Midlands and the north of England. Taylor has a similarly impressive industry CV dating back over 20 years and including roles as an operations, training and quality and security manager for Sigma Security. He also served as a project manager for Wilson James covering British Airways’ Heathrow headquarters, as well as being manager of security and safety services for both the Portman and Coventry Building Societies.

David Taylor

David Taylor

“Bringing on board professionals of Andrew and David’s calibre is a significant step for SSAIB as we invest in our regional manned services assessment capability in the run-up to the anticipated 2015 introduction of business licensing,” commented Stephen Grieve, “with all of the important implications involved in that process. This move also demonstrates the SSAIB’s credentials within the market as we operate for the benefit of licensing and certification customers around the UK and Ireland.”

Founded in 1994 and based in Tyne & Wear, the SSAIB also offers a range of management systems certification schemes, including ISO 9001 quality management systems certification and ISO 14001 environmental management systems certification.

Over 1,500 companies are now included on the SSAIB’s register.

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NICE Systems partners with G4S subsidiary AMAG Technology to integrate NICE Situator with Symmetry access control system

NICE Systems has announced its partnership with AMAG Technology, a G4S subsidiary, for the integration of the NICE Situator Physical Security Information Management (PSIM) solution with AMAG Technology’s Symmetry access control system. The joint solution can be used by command and control centres worldwide to improve situational awareness and streamline incident management.

The integration enables bi-directional communication between Symmetry and Situator. This means Situator can receive real-time Symmetry access control alerts and display these events along with access records and images of permitted personnel.

Situator’s ability to pull in data from a wide range of security systems means that Symmetry access control information can also be correlated with information from other sensors for accurate alerting. Once an alert is received, Situator’s automated processes guide operators through response plans to improve management efficiency and minimise risk.

Several utilities companies and ports are already using the integrated solution for day-to-day security operations, allowing them to more easily identify access breaches and to improve collaboration between relevant parties.

Leading expertise in PSIM

Shae Taylor, Symmetry’s extended business solutions programme manager at AMAG Technology, explained: “We’re thrilled to certify NICE as a partner in our Symmetry Extended Business Solutions Programme. NICE’s leading expertise in PSIM and situation management complements our advanced access control technology, enabling end users to benefit from an intelligent and unified solution.”

Chris Wooten; executive vice-president at the NICE Security Group

Chris Wooten; executive vice-president at the NICE Security Group

Chris Wooten, executive vice-president for the NICE Security Group, added: “Security operations are already benefiting from the enhanced situational awareness and streamlined incident management afforded by this integrated solution. The integration is available globally for any customer that wants to leverage Situator and Symmetry together. End users can have confidence in the rigorous testing and certification process that has taken place.”

NICE Systems’ security solutions help organisations capture, analyse and leverage big data to anticipate, manage and mitigate security and safety risks and improve operations. The NICE security, intelligence and cyber offerings provide valuable insights that enable enterprises and Government agencies to take the best action at the right time by correlating structured and unstructured data from multiple sensors and channels, detecting irregular patterns and recogniszing trends.

The company’s solutions have been deployed to help secure a broad range of organisations and events such as banks, utility companies, airports, seaports, city centres, transportation systems, sporting events and diplomatic meetings.

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G4S Half Year Results: New contract sales total £1.2 billion

Group CEO Ashley Almanza states that G4S has made “good progress” and delivered a “satisfactory financial performance” in the first six months of 2014, winning new contracts worth £1.2 billion and producing a 6.3% increase in PBITA in addition to a 13.2% rise in earnings. However, Almanza highlights that “there remains much to be done” to capture the full potential of the company’s strategy and strengthen the group’s performance.

Top line financial highlights for the first six months of 2014 are as follows:

• New contract sales with a total value of £1.2 billion (+26%)

• Organic revenue growth: 4.1%, Emerging markets: +12.1%, Developed markets: in line with the prior year

• Underlying PBITA1 6.3% higher at £185 million (2013: £174 million), Emerging markets PBITA up 14.7%, Developed markets PBITA up 6.7%

• Corporate costs: £28 million (an increase of £8 million, including £6 million non-cash pension and LTIP costs)

• Underlying earnings1 of £86 million (2013: £76 million) (up 13.2%), EPS up 3.7%

• Total cash generated by continuing operations: £212 million (2013: £224 million). This included cash flow of £185 million (2013: £148 million) from operating businesses and one-off corporate items of £27 million (2013: £76 million)

• Net debt position as at 30 June 2014: £1,680 million (reflecting the normal seasonal effect of lower cash flows in the first half – which is expected to reverse in the second half of 2014 – and the £109 million electronic monitoring settlement)

• Portfolio management: proceeds of £89 million in six months. A further £37 million is due to be received in the second half of 2014 from the sale of the business in Sweden

• Interim dividend maintained at 3.42 pence/share (DKK 0.3198)

G4S realised good progress and delivered a satisfactory financial performance in the first six months of 2014

G4S realised good progress and delivered a satisfactory financial performance in the first six months of 2014

Underlying results1,2 for the six-month period ending 30 June 2014

Revenue
2014: £3,371 million. 2013: £3,239 million. Change: 4.1%

PBITA
2014: £185 million. 2013: £174 million. Change: 6.3%

Earnings4
2014: £86 million. 2013: £76 million. Change: 13.2%

EPS5
2014: 5.6 p. 2013: 5.4 p. Change: 3.7%

Total results3 for the six-month period ending 30 June 2014

Revenue
2014: £3,371 million. 2013: £3,249 million. Change: 3.8%

PBITA
2014: £179 million. 2013: £47 million. Change: 280.9%

Earnings
2014: £78 million. 2013: £(196) million

EPS
2014: 5.0 p. 2013: (14.0) p

References
1At constant exchange rates. The results at actual exchange rates are set out on pages 15 to 31 of the full report (see below for download link). To clearly present underlying performance, specific items have been excluded and disclosed separately (see page 3 of the final report)
22013 results are presented at constant exchange rates and have been restated for the adoption of IFRS10 and IFRS11. 2013 PBITA has been re-presented for businesses subsequently classified as discontinued (see page 4 of the final report for details)
3At constant exchange rates and including specific items. 2013 results have been restated for the adoption of IFRS10 and IFRS11 and have been re-presented for businesses subsequently classified as discontinued (see page 4 of the final report)
4Earnings is equal to profit/(loss) for the period attributable to equity holders of the parent (see page 3 of the final report)
5Earnings per share is based on the average number of shares in issue of 1,545 million (2013: 1,403 million) (see pages 5 and 6 of the final report)

Commentary from the Group CEO

Speaking about this latest set of financials, Ashley Almanza (Group CEO at G4S) commented: “The group made good progress and delivered a satisfactory financial performance in the first six months, winning new contracts with a total value of £1.2 billion and producing a 13.2% increase in earnings. That said, there remains much to be done to capture the full potential of our strategy and to strengthen the group’s performance.”

“Demand for our services was robust, particularly in emerging markets. We’re restructuring and rebuilding our businesses in the UK and Ireland and, indeed, in Europe. We have seen growth return to the North American market.”

Ashley Almanza: Group CEO at G4S

Ashley Almanza: Group CEO at G4S

“Profit before interest, tax and amortisation of £1,851 million was 6% higher than the same period in 2013. This reflects revenue growth and improved operational gearing as we begin to capture benefits from restructuring and the implementation of our ‘Accelerated Best Practice’ Programmes.”

“With our increased focus on cash management, cash flow from operating businesses was £185 million – a 25% improvement on the same period last year. Total cash generated by continuing operations, including one-off corporate items, was £212 million. In 2013 that figure stood at £224 million.”

Following on from a review of the group’s strategy and business conducted last year, the management team duly identified a number of strategic priorities and, in each area, has subsequently made progress in moving from planning towards execution.

Portfolio and performance management
“Over the past year,” said Almanza, “we have divested six businesses at attractive exit multiples for aggregate proceeds of £160 million. This includes our business in Sweden which we sold in July this year. In addition, we have taken the decision to discontinue a further 15 smaller businesses and have an ongoing sale process for our US Government Solutions business. Portfolio management remains important for strategic focus, capital discipline and performance management.”

Organic growth
“We won new work with an annual contract value of over £600 million and a total contract value of £1.2 billion while at the same time replenishing our pipeline which now stands at an annual value of £4.9 billion.”

“We continue to see further opportunities to sell additional services in our key markets and, in line with previously announced plans, we have invested an annualised £15 million to strengthen sales and business development capability. We’re progressively embedding a consistent approach to sales operations and sales performance measurement.”

Accelerated Best Practice and Cost Leadership Programme
Almanza continued: “Our Accelerated Best Practice and Cost Leadership Programme gathered momentum with the appointment of key management and subject matter experts to focus on direct labour efficiency, organisational efficiency, route planning and telematics, IT standardisation, procurement and shared services. Our major restructuring programmes to strengthen the competitiveness and profitability of a number of key businesses, principally in the UK, Ireland and Europe, are being implemented in line with the detailed plans which were developed last year. These programmes and cost initiatives are beginning to deliver improved operational leverage.”

People and values
“We made good progress with the implementation of our corporate transformation programme. We have enhanced our risk management controls and practices and strengthened contract management, and we’re adopting a more systematic approach to measuring customer service. A group-wide internal communications programme is also underway to reinforce our group values and, in line with the ‘Safety First’ value, there has been concerted focus on Health and Safety policy and practice.”

The overall outlook

“We have achieved a satisfactory financial performance and we’re making good strategic progress,” stated Almanza. “Demand for our services continues to be strong in emerging markets. We are restructuring and rebuilding our UK and Ireland and European businesses, and we have seen good growth return to our North American markets.”

In conclusion, Almanza explained: “The group is making encouraging progress but, as stated earlier, there remains much work to be done to capture the full potential of our strategy and to strengthen the group’s overall performance.”

*Download the full Half Year Results announcement
**Download the full presentation slides

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G4S pledges to become leading provider of Armed Forces Reservists

G4S has given its commitment to provide at least 600 staff as members of the military reserve from 2017, making the company one of the UK’s leading employers of Armed Forces Reservists.

At a ceremony held at the Ministry of Defence offices and hosted by the Secretary of State for Defence, the Rt Hon Michael Fallon MP, the Group CEO of G4S, Ashley Almanza, and General Sir Peter Wall, Chief of the General Staff, signed the G4S Armed Services Covenant.

Under the terms of the Covenant, G4S has also pledged to implement flexible working conditions for members of staff which will allow them to continue their training and be deployed on exercise when needed by the Ministry of Defence.

Ashley Almanza stated: “We’re very proud to play our part in supporting Her Majesty’s Armed Forces and fully committed to being the leading employer of Armed Forces Reservists in the country in support of the Government’s new strategy for introducing additional reserve forces. We already employ large numbers of former service personnel and our commitment through the Armed Forces Covenant reinforces the very close relationship that G4S has with the UK Armed Forces.”

Ashley Almanza: Group CEO at G4S

Ashley Almanza: Group CEO at G4S

The Covenant also confirms G4S’ commitment to support the Career Transition Partnership (CTP), a UK-based resettlement service which aims to provide civilian employment for ex-forces personnel. As part of this pledge, G4S will guarantee interviews to ex-forces personnel for appropriate vacancies.

Working together to achieve the numbers

Chief of the General Staff, General Sir Peter Wall, said: “The pledge made by G4S to recruit a further 600 reservists is an immensely supportive step towards the Armed Forces and employers working together to achieve the numbers we need. This commitment illustrates recognition of the valuable experience and skills that reservists bring to an employer, particularly one as large as G4S. We look forward to working closely with G4S in achieving this target and learning from them how to optimise the relationships between reserve soldiers, G4S as their employer and the Army.”

General Sir Peter Wall continued: “It’s incredibly encouraging that employers like G4S are seeing reserve service as an asset in their employees and that their employment is mutually beneficial to both defence and the company. We recognise that we cannot grow our Reserve Forces alone. We need to work in partnership with big businesses such as G4S and support them so that they in turn can support our reserves.”

Michael Fallon, the Secretary of State, commented: “It’s right that everyone, including businesses, recognises the tremendous contribution and sacrifice that our Armed Forces and their families make for our country. Many firms already back our Armed Forces, and I want to help them improve what they offer and to encourage others to provide similar support.”

Michael Fallon MP: Secretary of State for Defence

Michael Fallon MP: Secretary of State for Defence

He concluded: “I’m pleased to see G4S taking the opportunity to formally support our Armed Forces community and to make a real difference to their lives by signing the Corporate Covenant.”

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G4S issues trading update for Q1 2014: ‘Positive start to the New Year’

This morning, G4S has issued a report on trading for the year to date and provided an overview of financial performance for the three months ending 31 March 2014.

Financial performance for the three months to 31 March is in line with the company’s plans. Compared to the same three-month period for 2013, revenues have grown by 4.8% with organic growth at 5.0%.

The company has continued to invest in organic growth, and its wider programme of corporate transformation and underlying profit before interest, tax and amortisation (PBITA) and earnings are slightly higher than for the same period last year.

Emerging markets organic revenue growth was 16% with double-digit growth across all emerging markets regions. Developed markets’ revenue was flat compared with 2013.

Positive start to the New Year

The group enjoyed a positive start to the New Year, winning new business with annual revenues of over
£440 million.

Major contract wins include retail and services customers in the US, retail customers in Brazil, port security consultancy in the Middle East, cash solutions contracts in the Netherlands and significant new business with the UK Government.

Ashley Almanza: CEO at G4S

Ashley Almanza: CEO at G4S

In April, the UK Government gave a positive assessment of the group’s Corporate Renewal Plan in the UK which forms part of the group’s wider corporate transformation programme

The group continues to have a strong financial position, with S&P recently confirming its investment grade credit rating at BBB-(Stable).

Commenting on current trading and outlook, Ashley Almanza (CEO at G4S) said: “Our trading performance is in line with our plans, reflecting strong growth in emerging markets and satisfactory performance in developed markets.”

Almanza continued: “We continue to implement a group-wide transformation programme which is focused on embedding our group values, restructuring key businesses and investing in organic growth, technology, innovation and cost leadership and which supports our long term objectives of delivering sustainable growth in earnings, cash flow and dividend.”

*This Interim Management Statement has been prepared following the adoption of IFRS10/11/12 (effective 1 January 2014)

**All figures are stated at, and all commentary refers to, constant exchange rates

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Security companies taking hands-on role in recruitment ahead of Glasgow 2014

Security companies in Scotland are raising the profile of security as a viable career choice for jobseekers in a new project launched today.

Launched via teleconference and involving over 100 participants from across Scotland, ‘Security Works: Scotland’ is a joint project between the British Security Industry Association (BSIA) and Jobcentre Plus, part of the Department for Work and Pensions (DWP).

The project aims to assist security recruiters by educating Jobcentre Plus staff on the wide-ranging careers available within the security sector, with the ultimate goal of ensuring that the right candidates are put forward for security roles.

Every Jobcentre in Scotland will be taking part in the two-week project, which is to consist of a series of teleconferences as well as a number of opportunities for Jobcentre Plus staff to visit BSIA member companies and witness first-hand the varied tasks that successful candidates could end up fulfilling.

Forefront of the recruitment process

Trevor Elliott, director of manpower and membership services at the BSIA, took part in today’s launch event.

“As the Trade Association representing the UK’s private security sector, the BSIA is delighted to be involved in the ‘Security Works: Scotland’ project,” explained Elliott.

“Actively engaging with Jobcentre Plus staff will place our industry at the forefront of the recruitment process. Raising awareness of the wealth of opportunities within our sector will ultimately ensure that the appropriate calibre of candidates is put forward for security roles.”

Trevor Elliott of the BSIA

Trevor Elliott of the BSIA

Robert Mckay, head of the DWP 2014 Commonwealth Games Delivery Team, added: “With the Glasgow 2014 Commonwealth Games now less than six months away, we wanted to acknowledge the important role that security will play in making the event a success. Although specific requirements for the Commonwealth Games will be a part of this project, we also hope that ‘Security Works: Scotland’ will have a lasting legacy in forging stronger relationships between Jobcentre Plus advisors and the security companies on behalf of whom they help to recruit.”

Visits to Scottish security employers

Visits to Scottish security employers will be an important part of the learning process. Four BSIA member companies – VSG, Argyll Ltd, G4S and Securitas – will be opening their doors to Jobcentre Plus staff over the coming weeks.

Also participating in the series of teleconferences will be Palmaris Services Ltd and SecuriGroup Services Ltd.

Roger Riach, branch manager for Securitas in Edinburgh, welcomes the project as an opportunity to challenge misconceptions about the security sector.

Riach explained: “The opportunity to work with the BSIA and the DWP ‘Security Works: Scotland’ Project means that we will be able to make people aware that the industry isn’t just about recruiting at all costs and putting people out on poor contracts and in poor conditions. This has been the tarnished image of security for too long. Securitas aims to educate both future colleagues and DWP staff around the benefits of not just working for Securitas but of the industry as a whole, making them aware that security can be a career and not just a stop gap.”

Brian Newlands, regional manager – Scotland for G4S, shares a positive outlook on the future legacy of the project in attracting high quality candidates to the sector.

“As the largest employer within the private security industry in Scotland, G4S is delighted to support the BSIA ‘Security Works: Scotland’ Project. We believe that by providing Jobcentre Plus staff with an insight into the diverse and varied roles which the modern security industry has to offer, they will be better equipped to advise those looking for employment or a change of career – who perhaps may not have considered a career within the security sector – with a more informed understanding of what our sector has to offer.”

BSIA member companies with a presence in Scotland and wishing to forge closer relationships with Jobcentre Plus staff can still be involved in the project by e-mailing the BSIA’s Scottish representative, Willie Clark, at: w.clark@bsia.co.uk

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G4S helping to make Hogmanay healthy and happy for Edinburgh revellers

Today, event security specialist G4S will be helping to ensure the 80,000 Hogmanay revellers in Edinburgh’s world-famous streets enjoy a safe start to 2014.

This will be the 20th year G4S Events has provided security and safety management services at Hogmanay, and the company will have more than 500 of its staff available to give safety and security advice and help everyone enjoy the festivities.

As Edinburgh prepares to enjoy a variety of events including a special concert by The Pet Shop Boys, the Kelidh and the Torchlight Procession, G4S is reminding guests of top safety tips on how to make the most of the festival (such as wearing warm clothing, drinking responsibly, keeping personal property secure and planning journeys home in advance).

G4S is a major partner of Hogmanay 2013-2014 and has been providing security and safety stewarding at the event since Hogmanay 1992-1993

G4S is a major partner of Hogmanay 2013-2014 and has been providing security and safety stewarding at the event since Hogmanay 1992-1993

G4S Events managing director Eric Alexander said: “As the dedicated security partners for Hogmanay 2013, G4S will have more than 500 stewards in Edinburgh helping to ensure that the festivities are safe and secure. We’re delighted to be part of this event and our team will be on hand to ably assist with any questions.”

Alexander continued: “Remember, regardless of the forecast this is Scotland in December and late at night, so please wrap up in warm and waterproof clothes. I would urge revellers to heed advice from our stewards – who’ll all be wearing G4S-branded high visibility jackets – so that everyone has an enjoyable Hogmanay experience to remember.”

Top tips for seeing the New Year in safely include:
 Do follow instructions given by the event organisers
 Do wear warm, waterproof clothing
 Do keep an eye out for each other and designate a meeting point if you should become separated
 Do plan in advance how to get home
 Do drink responsibly as people under the influence of too much alcohol may be refused entry
 Don’t bring glass (including bottles) or cans into the events arena (there will be bars where drink can be purchased)
 Don’t bring children to the Hogmanay Street Party
 Don’t turn up after 11.00 pm as entrants will not be admitted

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G4S issues update on electronic monitoring contracts

G4S plc has issued the following update in relation to billings made for electronic monitoring services provided by G4S Care & Justice Services (UK) Ltd in England and Wales between 2005 and 2013.

In June 2013, G4S plc engaged the international law firm Linklaters LLP to perform an independent review into the conduct of G4S employees in relation to billing under the electronic monitoring contract, and to assess whether there was any evidence of dishonesty or criminal conduct.

As part of its ongoing review, Linklaters has conducted an extensive search and review of e-mails and numerous interviews with relevant employees and has not identified any evidence of dishonesty or criminal conduct by any employee of G4S in relation to the billing arrangements under the electronic monitoring contracts.

The review has confirmed that, in certain circumstances, G4S Care & Justice Services (UK) Ltd wrongly considered itself to be contractually entitled to bill for monitoring services when equipment had not been fitted or after it had been removed.

Ashley Almanza: Group CEO at G4S

Ashley Almanza: Group CEO at G4S

This billing practice, which the company believes was confined to the electronic monitoring contract for England and Wales, was not consistent with the contract or G4S’ values. The company has apologised to the Ministry of Justice and issued credit notes totalling £23.3 million for amounts incorrectly billed between 2005 and May 2013.

A further credit note of £0.8 million will be issued for billings for the period from June 2013 to date.

These credit notes are issued against outstanding sums on these contracts and are covered by an impairment provision made in the Group’s half-year results. In addition, G4S has incurred external investigation costs of around £2 million.

Audit in relation to billings

The Ministry of Justice is conducting an audit in relation to electronic monitoring billings and the company’s assessment of these matters and the credit notes may not agree with the Ministry’s audit findings. Once those findings are available, G4S will work with the Ministry of Justice to resolve any outstanding matters.

G4S continues to provide close support for the reviews being conducted by the Cabinet Office and the Ministry into other G4S contracts with the UK Government. While these reviews are not yet complete, no evidence has been identified by the company (or brought to the company’s attention) which indicates that the billing procedures on the electronic monitoring contract have been applied to any other G4S contracts.

G4S has taken action to renew management, reinforce its corporate values and strengthen risk management and controls. Since 1 June, the company has made important changes to its senior management team, including the appointment of a new CEO, a new CFO and a new regional CEO for its UK businesses, and has also appointed an experienced Deloitte partner to the newly-created position of group head of risk and programme assureance.

The executive previously responsible for the UK businesses (including electronic monitoring) is no longer working at G4S.

Further organisational and process changes are being implemented to strengthen customer focus, governance and contract management and control. Taken together with the significant changes to its Board composition, G4S is well advanced in a programme of fundamental corporate renewal.

Comment from G4S on the Linklaters findings

Commenting on Linklaters’ findings, Ashley Almanza (G4S’s Group CEO) said: “Our announcement today follows months of intensive work by an independent law firm and external accountants. It’s an important step in setting this matter straight and restoring the trust which has been earned by our many thousands of committed and hard-working employees over many years.

“The way in which this contract was managed was not consistent with our values or our approach to dealing with customers. Simply put, it was unacceptable and we have apologised to the Ministry of Justice.

“As part of a wider programme of corporate renewal, we have changed the leadership of our UK business and we are putting in place enhanced risk management and contract controls. We remain committed to working with the Ministry of Justice and the UK Government to resolve this matter, and to providing enhanced oversight of service delivery and contract performance.”

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NAO publishes Memorandum for Parliament on electronic monitoring contracts

The National Audit Office has published a Memorandum for Parliament setting out the events surrounding the Ministry of Justice’s process in 2013 to retender its electronic monitoring contracts, currently with private contractors G4S and Serco, and its subsequent decision to commission a forensic audit of the contracts by PricewaterhouseCoopers (PwC). Today’s report also covers the main findings of that audit.

Following completion of the PwC forensic audit, the Department is in dispute with G4S and Serco over the amount of money by which the Department may have been overcharged for electronic monitoring services under the current contracts.

Both contractors are also now subject to a criminal investigation by the Serious Fraud Office.

The National Audit Office has published a memorandum for Parliament setting out the events surrounding the Ministry of Justice’s process in 2013 to retender its electronic monitoring contracts

The National Audit Office has published a Memorandum for Parliament setting out the events surrounding the Ministry of Justice’s process in 2013 to retender its electronic monitoring contracts

The Department believes that both providers charged for work that had not taken place in a way that was outside what was set out in the contracts for the electronic monitoring of offenders.

PwC’s estimate is that the potential overcharge by both providers in total may amount to tens of millions of pounds.

Examples of disputed billing practices

The NAO’s report includes examples of disputed billing practices which show that, in some instances, both contractors were charging the Department for monitoring fees for months or years after electronic monitoring activity had ceased, over similar timescales where electronic monitoring never occurred and multiple times for the same individual if that person was subject to more than one electronic monitoring order concurrently.

Both contractors have said that, in their view, such charging was in line with the terms of the contract.

G4S has since stated, however, that it now views that interpretation as inappropriate. The company has said that it intends to offer the Ministry £23.3 million in credit notes in respect of issues it has identified to date.

Serco has stated that it will refund any amounts that it agrees represents overcharging.

The Department has not currently agreed to any refund offers made by the providers.

The NAO does not draw any conclusions on contractual interpretation.

Read the full report issued by the National Audit Office

About the National Audit Office

The National Audit Office scrutinises public spending for Parliament and is independent of Government.

The Comptroller and Auditor General (C&AG), Amyas Morse, is an Officer of the House of Commons and leads the NAO, which employs some 860 staff.

The C&AG certifies the accounts of all Government departments and many other public sector bodies. He has statutory authority to examine and report to Parliament on whether departments and the bodies they fund have used their resources efficiently, effectively and with economy.

Its studies evaluate the value for money of public spending, nationally and locally. The NAO’s recommendations and reports on good practice help Government improve public services, while its work led to audited savings of almost £1.2 billion in 2012.

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