G4S faces its second Serious Fraud Office investigation in six months.
The announcement came as a blow to G4S and its outsourcing rival Serco, which had hoped for signs that their relationship with Westminster had been repaired. Both companies have been barred from winning new central government contracts since July, when it first emerged they had overcharged the Ministry of Justice by millions of pounds for the electronic monitoring of offenders. This issue has also been referred to the SFO.
G4S and Serco are enmeshed in British government. They carry out £3bn of work a year between them, running everything from welfare-to-work programmes for the unemployed, to prisons and immigration detention centres.
The world’s third-largest private sector employer remains locked in talks over the size of its repayments on the electronic tagging contracts.G4S are also running children`s homes and have already come in for some heavy criticism.
A G4S worker involved in a restraining procedure that led to the death of a 15-year-old boy has been promoted to safety, health and environment manager for children's homes and training centres.
Gareth Myatt died in April 2004 after he asphyxiated on his own vomit while being held down by training supervisor David Beadnall and two other workers at G4S-run Rainsbrook Secure Training Centre.
Those involved with formulating the procedures were criticised but the death from 'positional asphyxia' was ruled accidental.