UK government alleges fraud in Serco prisoner contract
LONDON Aug 28 (Reuters) - Britain's Ministry of Justice (MoJ) has asked the police to investigate alleged fraudulent behaviour by some Serco staff working on its UK prisoner escorting and custodial services (PECS) contract.
The MoJ on Wednesday said an investigation into the contract had showed some Serco staff recording prisoners as having been delivered ready for court when they were not -- a key performance measure for the contract.
In the light of the new evidence, the MoJ said it would put the contract under immediate "administrative supervision" and warned Serco it could terminate this contract if any corporate involvement was proved.
Serco said it had agreed to repay all past profits made on the PECS contract and would forgo any future profits. The company added that no member of its board had knowledge of this practice.
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