Ministry of Justice Agreement

  • 12 Mar 2014 12:38
G4S plc (G4S), the global integrated security company, announces that it has reached agreement with the Ministry of Justice (MoJ) on a settlement in respect of claims arising in relation to Electronic Monitoring (EM) services provided by G4S Care & Justice Services (UK) Ltd in England and Wales between 2005 and 2013
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The agreement also concludes outstanding matters relating to two facilities management contracts.

This agreement provides for a refund to the MoJ of £96.4 million (excluding VAT) and a reimbursement of costs totalling £12.5 million. In addition to the settlement amount, G4S incurred external investigation and advisory costs of £5 million.

The total settlement amount is £108.9 million (excluding VAT) and we expect this to comprise a cash payment of £75.9 million and credits for services previously provided of £33 million.

The programme of corporate renewal in the UK business forms part of the group-wide restructuring and transformation plans outlined in November 2013 and is not anticipated to give rise to significant additional costs.

Ashley Almanza, G4S Group Chief Executive said:
“The conclusion of the Cabinet Office and MoJ reviews and the agreement of a settlement with the MoJ are important milestones for the Group.

The way in which the EM contract was billed was not consistent with the contract or the Group’s values and we have apologised to the MoJ and the Government. We have repaid all amounts overbilled and have implemented significant changes to strengthen contract management and controls and to ensure our business is always conducted in a manner which is consistent with our group values.

We believe that the conclusion of this matter, together with the actions we are developing on corporate renewal, will enable us to maintain our position as a strategic supplier to Government.”