Prisons privatisation cancelled amid Serco probe

[EC]

Via the BBC: http://www.bbc.co.uk/news/uk-25052373

Plans to privatise three prisons have been cancelled because of an ongoing investigation into the leading bidder.

The justice secretary said the prison service would remain in charge at Hatfield, Lindholme and Moorland, all in South Yorkshire, while allegations against Serco remained outstanding.

The contractor is accused of over-charging the government for electronically tagging prisoners.

Chris Grayling said he was cancelling the plans for "operational reasons".

"The investigations remain ongoing," he said in a statement.

"The impact of the delay and the uncertainty this has created mean that for operational reasons we cannot postpone the outcome of the competition process any further.

"I have therefore decided that the competition for these prisons will cease and that all three prisons will be managed by HM Prison Service."

More at link.