G4S Probed by U.K. Fraud Office Over Charges for Tagging Dead
Stock Chart for G4S PLC (GFS)
G4S Plc (GFS) faces criminal investigation by the U.K. Serious Fraud Office over allegations the security and guarding provider overcharged the government for electronic monitoring services, including billing for dead people.
Shares in the world’s biggest provider of security services fell as much as 2.6 percent and were down 1.8 percent to 250 pence at 11:38 a.m. in London after the SFO confirmed it will probe claims made by the Justice Ministry in July that G4S overcharged for the electronic monitoring of prisoners. Serco Group Plc (SRP) will also be investigated.
“G4S has confirmed to the SFO that it will cooperate fully with the investigation,” the Crawley, England-based company said in a statement.
The investigation is the latest in a series of blows to G4S’s reputation since the company bungled a contract to provide guards last year for the London Olympics. Britain’s government has said it may exclude the company from tendering for future tagging contracts. Justice Secretary Chris Grayling said July 11 G4S overcharged for the tagging of offenders, including billing for dead people.
G4S replaced its chief executive officer last year, following the Olympic scandal, and its U.K. chief last month amid the Justice Ministry allegations. The company is due to release a trading and strategy update tomorrow.
Serco CEO Christopher Hyman resigned on Oct. 25 following the claims.
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