G4S faces more accounting claims from SFO
Former finance director alleges that G4S charged another part of the business £4m to hide the size of its profits
A Serious Fraud Office criminal investigation into security group G4S involving allegations of over charging the Government has been widened to cover claims of other accounting irregularities.
The allegations have emerged in statements from whistleblower Malcolm Batki, former finance director at G4S Integrated Services, during proceedings covering his claim for unfair dismissal.
Mr Batki lost his case but details of the claims he made have been passed to the SFO, according to sources familiar with the case.
He alleged that the group charged another part of the business £4m to hide the size of its profits while contracts were being negotiated with the Ministry of Justice. He also claimed that Nick Buckles, former chief executive, engaged in insider trading.
The judgment in the dismissal case showed G4S said it made a “normal and legitimate” charge. Mr Buckles said all his share trading followed company rules and had received the relevant approvals.
The SFO said its investigation into allegations that G4S had overcharged the Government by £24m for electronic tagging and prison escort contracts were continuing.
G4S said that Mr Batki had lost his claim and did not want to make any further comment.