This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-25052373
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Prisons privatisation cancelled amid Serco probe | Prisons privatisation cancelled amid Serco probe |
| (35 minutes later) | |
| Plans to privatise three prisons have been cancelled because of an ongoing investigation into the leading bidder. | Plans to privatise three prisons have been cancelled because of an ongoing investigation into the leading bidder. |
| The justice secretary said the prison service would remain in charge at Hatfield, Lindholme and Moorland, all in South Yorkshire, while allegations against Serco remained outstanding. | The justice secretary said the prison service would remain in charge at Hatfield, Lindholme and Moorland, all in South Yorkshire, while allegations against Serco remained outstanding. |
| The contractor is accused of over-charging the government for electronically tagging criminals. | |
| Chris Grayling said he was cancelling the plans for "operational reasons". | Chris Grayling said he was cancelling the plans for "operational reasons". |
| "The investigations remain ongoing," Mr Grayling said in a statement. | |
| "The impact of the delay and the uncertainty this has created mean that for operational reasons we cannot postpone the outcome of the competition process any further. | "The impact of the delay and the uncertainty this has created mean that for operational reasons we cannot postpone the outcome of the competition process any further. |
| "I have therefore decided that the competition for these prisons will cease and that all three prisons will be managed by HM Prison Service." | "I have therefore decided that the competition for these prisons will cease and that all three prisons will be managed by HM Prison Service." |
| 'Need for change' | |
| Serco and G4S are both subject to an investigation by the Serious Fraud Office. | |
| An audit suggested they took money for criminals who were either dead, in jail or never existed. | |
| Both firms have been excluded from new government contracts while a review of their operations is carried out. | |
| Serco said it understood that, given "the urgent need for change" at the prisons, the privatisation plans as they stood were not in the institutions' best interests. | |
| Acting group chief executive Ed Casey, said: "From meetings with the UK government, it is clear that the operational needs of the prisons will be best served by the necessary changes being implemented without further delay. | |
| Mr Casey took over when Christopher Hyman resigned last month after almost 20 years with the company. | |
| The Ministry of Justice said it still planned to press ahead with plans for "mixed market in public services". |