Today, the Ministry of Justice announced that Capita will take over the electronic monitoring contracts that Serco and G4s have lost (ie been sacked from) because of “significant anomalies” in billing practices. A couple of months ago, I tried to find out from Capita how it would generate the £400m that the company claimed it would make from the contracts in an August press release. That £400m represents an awful lot of tagging. Who do they plan to tag in addition to people in the criminal justice system? Capita plans to roll the technology out beyond the MOJ – but to which public sector organisations and why? In the post below, you’ll see how difficult it was to get answers from Capita and how reluctant the company and the Ministry of Justice were to release any further information about Capita’s projected income.
September 2013:
I rarely use the words “fascinating” and “press release” in the same sentence, but:
This fascinating press release appeared on the Capita website recently: “Capita [is the] preferred bidder for electronic monitoring contract.”
So.
It seems that Capita has positioned itself (with three other companies) to take over the dire electronic tagging system run by Serco and G4S for the Ministry of Justice. By “dire,” I mean “very likely fraudulent”: Serco and G4S were recently slammed by PriceWaterhouseCoopers for charging the taxpayer tens of millions of pounds for people they claimed to have tagged, but who turned out to be dead or incarcerated. Serco will participate in an independent “forensic audit” as a result. G4S won’t: according to the MOJ, they told Grayling No and were referred to the SFO. G4S, amazingly, told Robert Peston that it opted to call in the SFO itself. I am not sure what the real situation is there. All I know is that we get to keep paying for it.
And paying for it. We now have Capita as preferred bidder for a large electronic monitoring contract. Unfortunately, it is a contract that sets many alarms off itself. Chief among these Capita’s plan to make £400m in its first six years of the contract and its reluctance to explain in detail (to me anyway) exactly how it proposes to do that. I hope that they have decided against targeting the dead. Of even greater concern, though, is the extent to which they apparently plan to target and tag the living. Their press release says that the £400m in those first six years will be generated on the basis of an “anticipated increase in the use of tags beyond the current numbers of monitored individuals.” Early days, I know, but £400m is a lot of money, so we’re surely talking a lot of monitored individuals.