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  • G4S tagging contract now at risk

    G4S will face its “next big test” of government support as early as next month after it was stripped of a key prison contract in the wake of the company’s Olympics security shambles.
    FTSE 100 security group is waiting to hear whether it will be reappointed on a contract to provide electronic tagging of offenders. MPs stopped short of calling for the resignation of chief executive Nick Buckles after the Olympics fiasco.

    The FTSE 100 security group is waiting to hear whether it will be reappointed on a contract to provide electronic tagging of offenders services across England and Wales, worth £50m of annual revenue to the company.

    G4S and Serco gained an extension to an existing contract in 2009, which is due to expire in March 2013. It is understood that the Ministry of Justice (MoJ) is considering bids for the next phase of the contract with an announcement expected next month.

    Under the existing contract G4S and Serco manage the entire process including the technology, tagging, and monitoring of offenders, in two regions each. Under the next phase, the contract will not be split into regions but “services”, with one company providing technology across England and Wales and the other providing tagging for example. In September G4S won a contract to provide tagging services in Scotland.

    G4S declined to comment on the contract in England and Wales, but David Brockton, analyst at Espirito Santo, said it would be “the next big test”.

    The MoJ said on Thursday it would strip G4S of its contract to manage HMP Wolds in East Yorkshire when its contract expires in July 2013, with management reverting to the public sector.
    Related Articles
    Olympics security firm G4S loses contract to run Wolds prison 08 Nov 2012
    G4S rebounds after Olympics fiasco 06 Nov 2012
    Olympics fiasco: G4S to be frozen out in future 22 Jul 2012
    Political risks are getting too hot for private companies 08 Nov 2012.

    By Angela Monaghan

    7:30AM GMT 11 Nov 2012

    Find this story at 11 November 2012

    © Copyright of Telegraph Media Group Limited 2012