Scandal-struck Serco gains government support

A year on from Serco’s multi-million pound tagging scandal, the multinational contracting firm is back in favour with the government.

After issuing two proft warnings in May, Serco has recorded a pre-tax loss of £7.3m after the company was hit by restructuring costs, while loss-making contracts also took their toll.

A string of scandals last year, including the tagging scandal, in which the company charged the taxpayer for tagging criminals which, it emerged, were dead or in prison, saw the firm slapped with a £70m fine and a six-month ban on government contracts.

But now that’s ancient history it seems, and the government is gearing up to work with the company again.

According to the Evening Standard, Serco’s recently appointed boss Rupert Soames said the government was “very, very keen to help us get through this”. The company will be relieved as the government is Serco’s most important customer.

Serco recently lost a number of large contracts, including the Docklands Light Railway.

Soames has been joined by Angus Cockburn after prising him away from power generator firm Aggreko to help him turn the company round.

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