G4S agrees to pay UK 109m pounds over tagging row

12th Mar 2014 12:50

Troubled security group G4S has done a deal with the UK government over a prison electronic tagging row, saying it hoped the move would allow it to keep winning public work.G4S said it would refund the Ministry of Justice £96.4m and reimburse it for costs of £12.5m to settle claims arising from electronic monitoring services provided by G4S between 2005 and 2013.G4S has incurred external investigation and advisory costs of £5m on top of the settlement amount.It follows a series of reviews of government contracts with G4S and rival Serco after alleged overcharging for tagging offenders, some of whom were back in prison, overseas or even dead. Serco has already agreed to repay £68.5m.The tagging row was one of a number of controversies to hit G4S following its failure to provide enough security staff for the London 2012 Olympics, which led ultimately to the departure of former Chief Executive Nick Buckles.His successor, Ashley Almanza, who is overseeing a shake-up of the group including a UK overhaul, said he did not expect the latter to lead to significant extra costs.Almanza said: "The conclusion of the Cabinet Office and MoJ reviews and the agreement of a settlement with the MoJ are important milestones. "The way in which the EM contract was billed was not consistent with the contract or the group's values and we have apologised to the MoJ and the government. We have repaid all amounts over-billed and have implemented significant changes to strengthen contract management and controls. "We believe the conclusion of this matter, together with the actions we are developing on corporate renewal, will enable us to maintain our position as a strategic supplier to Government."Shares in G4S, which on Wednesday also reported lower-than-expected annual profits, fell 17.2p or 7% to 228.2p by 12.57 in London.PW