Capita Handed U.K. Prisoner Tagging Contracts Lost by Serco, G4S

Capita Plc (CPI), a service provider to the U.K. government, was handed interim control of contracts lost by G4S (GFS) Plc and Serco (SRP) Group Plc to provide electronic tagging on prisoners.

Capita will carry out monitoring services for the Ministry of Justice after the contracts with G4S and Serco expire on March 31 until new agreements come into effect later in 2014, Justice Secretary Chris Grayling said in a statement.

“Under these arrangements, Capita will be using the systems and equipment of G4S and Serco, but the two companies will no longer have a direct role in delivering the service on the ground,” Grayling said.

Serco and G4S agreed to an audit of their government contracts after irregularities were found over payments for tagging prisoners on release programs and defendants freed on bail. The justice ministry has said the companies must undertake “corporate renewal,” and threatened to exclude them from future government work if the changes are unsatisfactory.

London-based Capita is one of four preferred bidders for the electronic monitoring contracts. The others are Astrium SAS, Telefonica SA (TEF) and Buddi, the Justice Ministry said.

Representatives of Capita, Serco and G4S weren’t immediately prepared to comment on the contracts.

To contact the reporter on this story: Natasha Doff in London at ndoff@bloomberg.net

To contact the editor responsible for this story: David Risser at drisser@bloomberg.net

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