G4S admits it overcharged by millions for tagging offenders

G4S has admitted for the first time it overcharged millions of pounds for tagging offenders.

In a statement today, the global security company said it had “wrongly considered” billing arrangements with the Ministry of Justice over several years of the electronic monitoring contract.

It said the practice “was not consistent with G4S values. Simply put, it was unacceptable.”

The company is to repay just over £24m incorrectly charged over the last seven years and has apologised to the MoJ.

Its admission comes on the day the National Audit Office shone more light on the tagging debacle involving G4S and Serco.

Both are now under investigation by the Serious Fraud Office and are barred from any future MoJ tagging contracts.

The NAO report reveals that part of the evidence of alleged malpractice came from a G4S whistleblower.

It details how the overcharging took place.

It quotes one case where someone on bail, breached their curfew and , the following day, went to prison for two years. But G4S continued to charge for tagging for another 612 days before the courts confirmed the subject was no longer on bail.

Another example was when G4S carried on charging for 935 days, totalling £4,700, after the company had told a magistrates court that the electronic monitoring of an offender was no longer necessary.

A practice operated by Serco, the report said was, using the same equipment to monitor an offender under four separate orders, but charging for each order rather than just the one subject.

No refund offers have yet been agreed.

The Ministry of Justice said: “This matter is now the subject of a criminal investigation. We are not able to comment further at the current time.

“We will make a further statement when it is appropriate to do so. Independent auditors are still trying to establish what the taxpayer is owed.”

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