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New crisis strikes G4S

News of an SFO probe in G4S has hit the troubled security group's shares hard - and they could fall a lot further yet
July 12, 2013

Troubled security group G4S (GFS) is again under fire after Justice Secretary Chris Grayling called in the Serious Fraud Office (SFO) to investigate overcharging on government electronic tagging contracts for offenders.

IC TIP: Sell at 213p

Apparently, the company has been billing the government for tracking the movements of people who have moved abroad, had already had their tags removed, were still in prison and - in some cases - had even died. Moreover, G4S has refused to co-operate with a voluntary forensic audit of its billing processes. This latest reputational crisis follows on from last summer's debacle, when the company failed to deliver on its Olympics security contract - forcing the government to bring in the military to help police the games.