July 23, 2018 / 8:50 AM / 3 months ago

UK MoD suspends Capita contract after rival Serco challenges decision

LONDON, July 23 (Reuters) - Britain’s Ministry of Defence (MoD) said it had suspended a contract for outsourcing group Capita to provide firefighting services on military sites after rival Serco began a legal challenge to the decision.

Capita beat Serco in June to win the contract in a major boost to the company which is being restructured by new chief executive, Jonathan Lewis.

Serco confirmed that it was taking legal action over the contract but declined to comment any further. Capita said it remained full committed to the contract and would continue to work with the MoD on the matter. (Reporting by Arathy S Nair in Bengaluru and Kate Holton in London Editing by Keith Weir)

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