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G4S Admits to $38m fraud in UK Electronic Monitoring Scheme

g4s-protestG4S which likes to market itself as the “world’s  leading security company” admitted yesterday to defrauding the UK government of about $38 million (24m pounds) in overcharges for electronic monitoring fees. The overcharging, which included billing for the monitoring of people who were deceased or had been sent back to prison. The admission comes after the company commissioned the law firm of Linklater to do a review of their electronic monitoring contracts. In a stunning comment in response to the review’s findings of overcharging and charging of people who had long since been taken off monitoring a company statement said G4S had : “wrongly considered itself to be contractually entitled to bill for monitoring services when equipment had not been fitted or after it had been removed.”  In other words, the world’s largest security company doesn’t understand the idea that a firm is not entitled to collect revenue for services it is not providing.

The G4S case will come before a parliamentary committee this week. The company will be joined by Serco another provider of monitoring services in the United Kingdom. This is not the only scandal brewing in the ranks of  G4S. Just last month, a South African Minister of Corrections took over a 2,900 bed private prison run by G4S in the country’s Free State province. An independent study had uncovered systematic abuse of prisoners, including forced administration of psychotropic medications and regular usage of electroshock to discipline men living in the facility. Earlier in the year the company lost bids for  security contracts at two British universities when students protested over G4S involvement in providing security for Israeli border control and settlements.

To read the Guardian report on the G4S electronic monitoring case go to: http://www.theguardian.com/business/2013/nov/19/g4s-admits-overcharging-ministry-of-justice-tagging

About the author

James Kilgore

James Kilgore is an activist , writer and educator based in Urbana, Illinois. He is a Soros Justice Fellow for 2017-18. His project, Challenging E-Carceration, focuses on electronic monitoring in the criminal legal system.

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