Home Fraud and Mismanagement: US Contracts

Fraud and Mismanagement: US Contracts

G4SUSAMAP@In addition to extensive problems at its youth detention facilities in Florida, G4S has lost contracts in the US while under investigation for fraud and mismanagement. In Miami-Dade County, G4S allegedly engaged in an overbilling scheme for security services provided at mass transit stations. Lawyers for a whistle-blower who tipped off authorities estimated that the actual amount of overbilling was in the range of $17 to $22 million. After canceling the contract, public officials engaged in a five-year legal battle to recover overcharges. A settlement was finally reached with the company paying $7.5 million to Miami-Dade County.

G4S has had a series of fiascos at US nuclear sites, leading to the termination of its contracts.

G4S/Wackenhut faced congressional hearings for security guards engaging in “Animal House-like antics” while guarding the US embassy in Kabul for the US State Department.  The Project on Government Oversight interviewed numerous embassy staff who provided “evidence of a pattern of blatant, longstanding violations of the security contract, and of a pervasive breakdown in the chain of command and guard force discipline and morale.”

The following are some of the reports on G4S operations in the US.

Vodka Butt-Shot Contractor STILL Guarding the Kabul Embassy

Vodka Butt-Shot Contractor STILL Guarding the Kabul Embassy

SOURCE: MOTHER JONES More than a year has passed since the State Department decided to drop its contract with the security firm protecting the US embassy in Kabul, following an international scandal featuring drunken debauchery fit for a Van Wilder flick. But the company that introduced the world to vodka butt-shots is still on the […]

Racketeering Charges Dropped Against High Level G4S/Wackenhut Employees

SOURCE:  CBS MIAMI Racketeering charges have been dropped against two high level Wackenhut employees accused of overbilling the county for Metrorail security.  Prosecutors said Thursday they couldn’t move forward with their case against Rene Pedrayes and Eduardo Esquivel.  One reason the case fell apart was because one of the state’s key witnesses, Miami-Dade police officer […]

G4S/Wackenhut Faces Debarment From Los Angeles City Contracts

G4S/Wackenhut Faces Debarment From Los Angeles City Contracts

SOURCE: WISTV NEWS 10, June 26, 2007 — The City of Los Angeles is launching an investigation into security contractor Wackenhut Corporation/G4S’compliance with the city’s Responsible Contractor Policy, a probe that could result in debarment from city contracts for five years. Prior to the investigation, Wackenhut had more than $5 million annually in contracts with […]

Security Company to Fork Over $7.5 Million

Security Company to Fork Over $7.5 Million

SOURCE: NBC NEWS 6 After an intense five-year battle, the Wackenhut security company is agreeing to pay out $7.5 million to settle allegations that company executives overbilled Miami-Dade taxpayers for years.  But despite the payout and admission of guilt, Wackenhut will be able to keep doing business with Miami-Dade County. The payout follows a series of […]

Head of G4S/Wackenhut Security Services in Florida Charged with Racketeering

Head of G4S/Wackenhut Security Services in Florida Charged with Racketeering

SOURCE: NBC NEWS 6 The man at the head of Wackenhut Security Services in Florida at the time of a 2007 NBCMiami investigation was arrested and charged with racketeering Friday, NBCMiami has learned.  Rene Pedrayes, 49, was general manager of Wackenhut’s state operations when he left the company amid allegations that the company systematically overcharged Miami-Dade taxpayers […]

Miami-Dade County Manager Finally Fires G4S/Wackenhut

Miami-Dade County Manager Finally Fires G4S/Wackenhut

SOURCE: NBC 6 SOUTH FLORIDA On Friday, County Manager George Burgess finally fired Wackenhut Corporation, the security firm who, according to a county audit, has been overcharging tax payers millions of dollars for work that was never done.  “Ghost posts” and “phantom billing” were just a few of the ways Wackenhut made sure they got every […]

Nuclear Site Terminates G4S Security Contract Following Nun’s Break-in

Nuclear Site Terminates G4S Security Contract Following Nun’s Break-in

SOURCE: REUTERS The U.S. government’s “Fort Knox” of weapons-grade uranium storage has ended a contract with a unit of an international security firm two months after an 82-year-old nun and other nuclear activists broke into the site. The managing contractor at the Oak Ridge, Tennessee, site, B&W Y-12, a unit of Babcock & Wilcox Co, […]

Nuclear Weapons Guards Cheated on Terrorism Drills

Nuclear Weapons Guards Cheated on Terrorism Drills

SOURCE:  NBC NEWS.COM Security guards who repelled four simulated terrorist attacks at a Tennessee nuclear weapons plant had been tipped in advance, undermining the encouraging results, the Energy Department’s watchdog office said Monday. The surprising successes by guards at the Y-12 nuclear weapons plant last summer in Oak Ridge, Tenn., spurred an internal investigation. It determined […]