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(Alliance News) - The UK Financial Reporting Council on Tuesday said it is closing its investigation into Serco Group PLC regarding the company's annual results for 2011 and 2012.
The probe centred on fraud relating to a contract with the UK government for the electronic tagging of prisoners. Serco was accused of charging the taxpayer for tagging prisoners who were dead, in prison or overseas.
Serco is a Hampshire-based outsourcer, with a focus on defence, justice & immigration, transport, health, and citizen services.
In April 2021, former Serco senior managers Nicholas Woods and Simon Marshall were cleared of hiding GBP12 million in profit in 2011 from the firm's electronic tagging contracts, as the Serious Fraud Office dropped the prosecution. Marshall was cleared of two further counts of fraud around June 2012 and January 2013.
Serco agreed to repay more than GBP68 million for overcharging on a contract to provide electronic tagging of offenders. The company had been billing the UK government for tagging prisoners who were later found to be dead, in prison or overseas.
In 2019, Serco was fined over GBP19 million over the electronic tagging fraud as part of a deferred prosecution agreement. The fine was reduced by 50% because Serco had reported the offences itself.
The company's UK subsidiary, Serco Geografix, took responsibility for three offences of fraud and two of false accounting committed between 2010 and 2013 relating to understating profits from the contracts with the Ministry of Justice.
Serco shares were 0.6% higher at 153.80 pence each in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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