G4S ends tagging inquiry with $56 million UK fraud office deal
Private security group G4S said on Friday it had agreed to
pay 44.4 million pounds ($56 million) to the UK Serious Fraud Office (SFO) to
avert criminal charges after a long-running inquiry into electronic tagging
contracts.
The SFO began investigating G4S and Serco in 2013 over bills
charged to the British government for tagging people who were either dead, in
prison or had not been tagged.
“We have apologised to the UK Government and implemented
significant changes to people, policies, practices and controls,” G4S Chief
Executive Ashley Almanza said.
Serco drew a line under its own involvement last year by
paying 19.2 million pounds in penalties.
G4S said in a statement that its rehabilitation and prisons
unit, G4S Care and Justice Services (UK) Ltd, had taken responsibility for
three allegations of improperly billing the government for contracts between
August 2011 and May 2012.
The proposed Deferred Prosecution Agreement (DPA), which
also includes reviews of internal practices at G4S and its implementation of
counter measures, still needs court approval.
“The terms of this DPA will provide substantial oversight
and assurance regarding G4S Care & Justice’s commitment to responsible
corporate behaviour,” SFO Director Lisa Osofsky said in a statement.
G4S, which provides security for the Hinkley Point C nuclear
power station and the International Cricket Council, had repaid Britain under a
121-million-pounds settlement in 2014.
Shares in G4S closed 1.6% higher at 119.5 pence in London.
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