SERCO GROUP PLC: Statement re review of electronic monitoring contracts Review of electronic monitoring contracts 11 July 2013 Serco Group plc (Serco), the international service company, notes today's announcements from the UK Ministry of Justice (MoJ) and the Cabinet Office. These reflect the initial findings of the independent audit of the electronic monitoring contract originally let in 2005. The audit was commissioned by the MoJ on 17 May 2013. The initial findings of the audit have highlighted to the MoJ matters of potential concern in relation to billing practices. Serco has therefore agreed with the MoJ that a detailed investigation into the contract should continue with Serco's full cooperation. The MoJ has stated that the current estimate of the amounts involved are in the low tens of millions of pounds in total for both companies since 2005. We have confirmed that we will repay any amount agreed to be due. Given this investigation, Serco has decided to withdraw from the re-tendering process for the electronic monitoring service. The MoJ has reconfirmed that Serco continues to be the single remaining bidder for the South Yorkshire group of prisons. However, the award will be delayed and is dependent on the outcome of MoJ's audit. We will cooperate fully with the MoJ on their audit of other contracts with the Department and with the Cabinet Office on their wider review across other UK government contracts. The Justice Secretary, who said that Serco is one of the Government's biggest and most important suppliers, expressed his gratitude for Serco's cooperation. Christopher Hyman, Chief Executive of Serco Group plc, said: "Serco is a business led by our values and built on the strength of our reputation for integrity. These values lie at the heart of the many thousands of our people who are endeavouring to deliver the highest standard of service to our customers around the world. We are deeply concerned if we fall short of the standards expected of all of us. We are therefore taking this extremely seriously and will continue to work closely with our customer to resolve their concerns in this matter. We will not tolerate poor practice and behaviour and wherever it is found we will put it right." Ends For further information please contact Serco: Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227 Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226 About Serco Serco is a FTSE 100 international service company, which combines commercial know-how with a deep public service ethos. Around the world, we improve essential services by managing people, processes, technology and assets more effectively. We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public. Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence. Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors. More information can be found at www.serco.com END -0- Jul/11/2013 12:19 GMT
SERCO GROUP PLC: Statement re review of electronic monitoring contracts
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