LONDON Aug 20 Britain's largest outsourcing
company Capita announced a 400 million pound contract to
tag criminals on Tuesday, benefiting from an overcharging
scandal that engulfed rivals G4S and Serco.
The firm said it had been selected by the Ministry of
Justice as the preferred bidder for a six-year deal to put
electronic tags on offenders released from prison and to roll
out the system nationally for the first time.
Both G4S and Serco, the two outsourcing
companies which had held the previous contracts since 2005,
pulled out of the bidding on a new deal earlier this year after
an audit showed they had charged for tagging criminals who were
either dead, in prison or never tagged in the first place.
Capita said that as part of the contract it would provide
two monitoring centres, a field force and integrate all the IT
systems which will be procured separately.
"When fully live, this is expected to be the largest, single
and most advanced "tagging" system in the world," Chief
Executive Paul Pindar said.
The firm added that the system has been designed to enable
other government bodies like the probation services, currently
looking to put out 500 million pounds worth of contracts, to
procure related services.
Britain's authorities have stepped up their scrutiny of
their biggest suppliers, with four separate investigations and
reviews currently underway. The government has also set a target
of giving 25 percent of its work to small and medium-sized
The National Audit Office is currently looking at Capita,
along with Serco, G4S and French firm Atos, as part of
its review of how government handles its relationship with its
largest suppliers. It is expected to report in November.
Shares in Capita, which are up 31 percent so far this year,
compared to the wider FTSE 100 which is up 20 percent, were down
0.51 percent by 1130 GMT.