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| Serco chief quits ahead of investigation into electronic tagging charges | |
| (about 1 hour later) | |
| Serco, the services company facing an investigation into its government contracts, has begun an urgent search for a new chief executive after Chris Hyman quit in a desperate attempt to rebuild the company's reputation. | Serco, the services company facing an investigation into its government contracts, has begun an urgent search for a new chief executive after Chris Hyman quit in a desperate attempt to rebuild the company's reputation. |
| After allegations that Serco overcharged the government for electronic tagging of offenders, the operator of hospitals, prisons and railways around the world needs to improve its relationship with the UK government, which provides 25% of its revenue. | After allegations that Serco overcharged the government for electronic tagging of offenders, the operator of hospitals, prisons and railways around the world needs to improve its relationship with the UK government, which provides 25% of its revenue. |
| Hyman, who is leaving after 20 years with the firm and 10 years as chief executive, said: "At this time, nothing is more important to me than rebuilding the relationship with our UK government customer. In recent weeks it has become clear to me that the best way for the company to move forward is for me to step back." | Hyman, who is leaving after 20 years with the firm and 10 years as chief executive, said: "At this time, nothing is more important to me than rebuilding the relationship with our UK government customer. In recent weeks it has become clear to me that the best way for the company to move forward is for me to step back." |
| The company, chaired by Alastair Lyons, said a new chief executive would be appointed from outside the group but in the interim named Ed Casey, head of the Americas division since 2005, to take the helm. | The company, chaired by Alastair Lyons, said a new chief executive would be appointed from outside the group but in the interim named Ed Casey, head of the Americas division since 2005, to take the helm. |
| Less than 24 hours earlier rival G4S, also caught up in the controversial electronic tagging fiasco, parted company with the head of its UK and Irish operations Richard Morris. The G4S chief executive, Nick Buckles, left in May. | Less than 24 hours earlier rival G4S, also caught up in the controversial electronic tagging fiasco, parted company with the head of its UK and Irish operations Richard Morris. The G4S chief executive, Nick Buckles, left in May. |
| Last month Serco was put on notice it could be investigated by the Serious Fraud Office after charging the government for tagging criminals who were either dead, still in prison or who had never been tagged in the first place. | Last month Serco was put on notice it could be investigated by the Serious Fraud Office after charging the government for tagging criminals who were either dead, still in prison or who had never been tagged in the first place. |
| Serco, which was transformed into a major international firm under Hyman, is embarking on what it describes as a "renewal programme". | Serco, which was transformed into a major international firm under Hyman, is embarking on what it describes as a "renewal programme". |
| The UK and Europe division is to be split in two to focus on the "UK government customers" and the other on activities in the wider public sector. Three new non-executive directors are to be appointed along with a new general counsel. A board committee for corporate responsibility is also to be created. | The UK and Europe division is to be split in two to focus on the "UK government customers" and the other on activities in the wider public sector. Three new non-executive directors are to be appointed along with a new general counsel. A board committee for corporate responsibility is also to be created. |
| Serco did not immediately release details of any payoff to Hyman, who was brought up in apartheid Durban. | Serco did not immediately release details of any payoff to Hyman, who was brought up in apartheid Durban. |
| Despite the hastiness of Hyman's departure, Lyons paid tribute: "As CEO since 2002, he has taken Serco from a predominantly UK business with a turnover of £1.3bn to the £5bn international services business it is today. He leaves with our very best wishes." | Despite the hastiness of Hyman's departure, Lyons paid tribute: "As CEO since 2002, he has taken Serco from a predominantly UK business with a turnover of £1.3bn to the £5bn international services business it is today. He leaves with our very best wishes." |
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