In the UK, G4S has had a series of high profile scandals involving fraud, breach of contract, and gross mismanagement. For example, G4S had to pay back $181 million to the UK government for overcharging on contracts for electronic monitoring of criminal offenders.
G4S is infamous for its “Olympics fiasco.” Less than one month before the games began, G4S announced that it was unable to meet its commitment to provide the staff, falling short by more than 3,500 personnel. As a result, the government had to call in troops to make up for the shortfall.
Because of problems with G4S and other contractors, the UK government initiated an investigation by the National Audit Office (NAO) aimed at reviewing the government’s management of outsourced contracts.. The NAO warned that poor oversight of contracts has left the government exposed to the possibility of widespread fraud and overcharging. The report indicated that government officials and civil servants fail to provide the proper oversight needed to guard against overcharging and poor contract performance.
SOURCE: EG BOARD & LEADERSHIP A survey finds that G4S had the worst performing board of directors of any company in the UK. The Case Business School conducted the survey on corporate governance issues. The survey asked 400 business leaders to rate UK companies on their corporate governance. The results deemed G4S to have the worst […]
SOURCE: REUTERS The world’s biggest security firm G4S has agreed to repay $181 million plus tax to the British government after overcharging on a contract to monitor criminal offenders with electronic ankle bracelets. The settlement raises the prospect that a ban on new work could soon be lifted. The repayment, much higher than the 24 million […]
SOURCE: INDEPENDENT G4S is facing fresh controversy after the Government announced it plans to refer the private security giant to the Serious Fraud Office for a second time. The Ministry of Justice said that after auditing 15 big outsourced contracts worth almost £4 billion, it had discovered “serious issues” on G4S’s running of facilities management […]
INTERNATIONAL BUSINESS TIMES Security group G4S has announced that CEO Nick Buckles, who presided over the firm’s Olympic security shambles, is stepping down from his position at the end of May. Buckles will be replaced by G4S’s current CFO Ashley Almanza, who only joined the company three weeks ago. Shares rose 3% following the announcement. […]
SOURCE: GUARDIAN The Serious Fraud Office has been called in by the justice secretary to investigate the private security company G4S for overcharging tens of millions of pounds on electronic tagging (ankle bracelets) contracts for offenders. Chris Grayling told MPs the overcharging included billing for tracking the movements of people who had moved abroad, those […]
SOURCE: INTERNATIONAL BUSINESS TIMES An extra 1,200 troops have been deployed to work at the Olympic Games as the scale of the shortfall left by security company G4S becomes ever larger. The decision to call in more troops will heap further embarrassment on G4S, whose chief executive, Nick Buckles, has been fiercely admonished by the […]