‘Fraud’ probe into prisoner escort firm

Serco employees allegedly recorded prisoners as having been delivered ready for court – a key performance measure for the contract – when in fact they were not, the Ministry of Justice (MoJ) said.

The contract, which covers prison transfer services in London and East Anglia, has been put under administrative supervision.

Justice Secretary Chris Grayling said: “It’s become very clear there has been a culture within parts of Serco that has been totally unacceptable, and actions which need to be investigated by the police.”

Both the MoJ and Serco’s directors have asked City of London police to investigate the actions of the staff working on the contract.

The Government department said differences between Serco’s records of performance and the actual situation on the ground has been subject to investigation for some months.

Evidence of potentially fraudulent behaviour emerged as part of audit work announced by Mr Grayling in July in the wake of an electronic tagging scandal, in which G4S and Serco were both accused of overcharging the Government for monitoring offenders.

In light of the new findings, Serco has agreed to repay all past profits made on the prison escorting contract and to forgo any future profits.