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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. |
Justice Secretary Chris Grayling said the prison service would remain in charge at Hatfield, Lindholme and Moorland, all in South Yorkshire. | Justice Secretary Chris Grayling said the prison service would remain in charge at Hatfield, Lindholme and Moorland, all in South Yorkshire. |
Serco was named as the leading bidder in July but the company has been accused of over-charging the government for electronically tagging criminals. | Serco was named as the leading bidder in July but the company has been accused of over-charging the government for electronically tagging criminals. |
Mr Grayling said the privatisation was cancelled for "operational reasons". | Mr Grayling said the privatisation was cancelled for "operational reasons". |
"The investigations remain ongoing," he said in a statement. | "The investigations remain ongoing," he 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." |
Plans 'in tatters' | |
Labour's shadow justice secretary Sadiq Khan called the decision a "humiliating climbdown". | |
"David Cameron and Chris Grayling's plans for the prison system are in tatters," he said. | |
"Their talk of a rehabilitation revolution is nothing but a pipe-dream. The severe shortage of prison places combined with cuts in staff is causing huge problems and is putting public safety at risk." | |
Serco and G4S are both subject to an investigation by the Serious Fraud Office. | Serco and G4S are both subject to an investigation by the Serious Fraud Office. |
An audit suggested they took money for tagging criminals who were dead, in jail, or never existed. | An audit suggested they took money for tagging criminals who were dead, in jail, or never existed. |
Both firms have been excluded from new government contracts while a review of their operations is carried out. | 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. | 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. | 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. | Mr Casey took over when Christopher Hyman resigned last month after almost 20 years with the company. |
The move was greeted as "great news" by the Prison Governors Association union. | The move was greeted as "great news" by the Prison Governors Association union. |
"It should be seen as recognition of the recent hard work completed in order to modernise and streamline the public sector prison service," president Eoin McClennan said. | "It should be seen as recognition of the recent hard work completed in order to modernise and streamline the public sector prison service," president Eoin McClennan said. |
Prison reform campaigners welcomed what they described as a ministerial "U-turn" but called for the government to go further. | Prison reform campaigners welcomed what they described as a ministerial "U-turn" but called for the government to go further. |
Frances Crook, chief executive of the Howard League for Penal Reform, said the justice secretary should "reverse the justice privatisation tide currently being witnessed across the country". | Frances Crook, chief executive of the Howard League for Penal Reform, said the justice secretary should "reverse the justice privatisation tide currently being witnessed across the country". |
She added: "Something as important as taking away someone's freedom should only be done by the state, answerable to voters. | She added: "Something as important as taking away someone's freedom should only be done by the state, answerable to voters. |
But the Ministry of Justice insisted it "remained fully committed to a mixed market in public services". | But the Ministry of Justice insisted it "remained fully committed to a mixed market in public services". |