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G4S

The SFO is conducting a criminal investigation into G4S electronic monitoring contracts.

On 10 July, following the announcement from G4S Plc, the Serious Fraud Office confirmed that it had received approval in principle to enter into a Deferred Prosecution Agreement (DPA) with G4S Care and Justice Services (UK) Ltd (G4S C&J), a wholly-owned subsidiary of G4S Plc. On Friday 17 July, Mr Justice William Davis granted final approval for the DPA.

In entering the DPA, G4S C&J has accepted responsibility for three offences of fraud against the MoJ arising from the scheme to deceive the MoJ as to the true extent of G4S C&J’s profits between 2011 and 2012 from its contracts for the provision of electronic monitoring services.  The scheme was designed to prevent the MoJ from attempting to decrease G4S C&J’s revenues under those contracts. 

The DPA requires G4S C&J to pay a financial penalty of £38.5m and the SFO’s full costs of £5.9m. Compensation to the MoJ has already been paid by G4S C&J as part of a £121.3m civil settlement in 2014.

Additionally, the terms of the DPA bind G4S C&J to wide-ranging compliance obligations and improvements, including periodic review, assessment, and reporting of G4S plc’s and G4S C&J’s internal controls, policies and procedures by a third-party reviewer. These compliance obligations are a critical component of the DPA, offering substantial oversight and assurance regarding the future corporate conduct of a major UK government supplier. More information can be found in the press here.

Page published on 12 Nov 2014 | Page modified on 17 Jul 2020