LONDON, July 12 The British government said it
would not be awarding outsourcing companies G4S and
Serco any new contracts until they receive a clean bill
of health from a government review into their public service
On Thursday the government placed all contracts held by the
two companies under review after an audit found they had charged
for tagging criminals who were either dead, in prison or never
tagged in the first place.
"In-flight procurements involving these two companies will
continue but they will not be awarded any business until the
review is complete -- and they have a clean bill of health,"
said a spokeswoman at the government's Cabinet Office.
This means the companies remain in the race for any existing
government contracts they have tendered for, and are able to bid
for new business, but will not be awarded contracts until the
review is over.
The government said on Thursday the review would be led by
the Government's Chief Procurement Officer who is expected to
report in the coming months, with initial findings due to be put
to the Cabinet office within weeks.
The companies are two of the government's biggest suppliers
and run services from prisons and immigration centres to
transport. Shares in both Serco and G4S, which makes around 10
percent of its 7.5 billion pounds ($11.34 billion) turnover from
British government work, have fallen since the review was