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Review of electronic monitoring contracts

Published: 26 Sep 2013

Serco notes today's announcement from the UK Ministry of Justice (MoJ) in relation to materials they have provided to the Serious Fraud Office (SFO) regarding Serco's electronic monitoring contracts. Serco has cooperated fully with the detailed independent forensic audit, and continues to believe that it has billed in accordance with the contract, consistent with the understanding of the MoJ and as anticipated by both parties at the time of contract signature. We understand that today's statement does not change the process or the end of November timescale as previously announced by the MoJ on 28 August for determining Serco's eligibility for new and future work with Government.

Serco has responded to all that the MoJ has requested since the reviews and audits started. Serco cooperated fully with the MoJ when the initial review into the billing practices of our EM contract began in May. In July, at the request of the MoJ, we then agreed to deepen these reviews into a forensic audit by PwC of EM contract billing. We have provided PwC with full access to all relevant material asked for. As previously stated, we have confirmed that we will repay any amount agreed to be due.

In addition, Serco has set up a Committee of the Board with the independent input of Lord Gold to oversee an in-depth programme of cultural and systems review, supported by independent experts, recommend changes where appropriate and implement them accordingly.

Christopher Hyman, Group Chief Executive, said: "We are fully cooperating with the Ministry of Justice and remain committed to doing the right thing to resolve their concerns. The investigations are ongoing and we have an agreed process in place to establish the full facts and take any necessary action.

"Our people work hard every day to deliver important public services and will share my concern about these matters. As I have made clear previously, we will not tolerate poor practice and behaviour and wherever it is found we will put it right."

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