More Private Security and Less Accountability

‘Are we at all surpised’? Ever since the British Government began selling off the country through PFI (Private Finance Initiatives) in the late 1980s we have seen far less responsibility.  Instead of preported superior efficiency and lower costs to the regular person we have witnessed the opposite. This same game of handing over formerly public assets to private companies has been played through P3s (Public-Private Enterprises) throughout the West. The first western country to see ‘full application’ of P3 experimentation was New Zealand beginning in 1990.

Story:

Security Giant G4S hit by allegations of fraud and insider trading

By Peter Campbell

PUBLISHED:22:30 GMT, 24  February 2014| UPDATED:22:30 GMT, 24 February 2014

G4S was yesterday rocked by allegations of  fraud and insider dealing, writes Peter Campbell.

An ex-employee of the scandal-hit private  security giant has claimed in court papers that former chief executive Nick  Buckles sold a tranche of shares straight after telling divisional bosses to ‘post the best possible results’.

Former financial director Malcolm Batki, in  papers alleging unfair dismissal in 2011, also said the group shifted profits  between divisions to bolster its case when negotiating taxpayer-funded  contracts.

Scandal-hit: G4S is accused of concealing its true profitability when negotiating contracts with the MoJ

Scandal-hit: G4S is accused of concealing its true  profitability when negotiating contracts with the MoJ

He claimed the group incurred a £4million  charge with its prisons unit to conceal its true profitability when negotiating  contracts with the Ministry of Justice.

Saying it was less profitable than it was  would have allowed the company to demand higher fees for a contract. This is now  being investigated by the Serious Fraud Office, which is already looking into  the company over two other matters.

In November 2009 Buckles exercised his rights  to buy a large number of shares at a knock-down price. He immediately sold them,  making a gain of £1.2million, according to documents filed by G4S (0.5p down at  236.2p) at the time.

G4S said: ‘Regrettably, Mr Bakti has been  pursuing G4S unsuccessfully in legal proceedings since his role was made  redundant in January 2011.

‘As for the share dealing in question, we can  confirm that, in this particular case, the trading was authorised in accordance  with the G4S share dealing code.’

Source: http://www.dailymail.co.uk/money/news/article-2567038/G4S-hit-allegations-fraud-insider-dealing.html#ixzz2uNpgsloV

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