HOOK (dpa-AFX) - Serco Group plc (SRP.L) said that its subsidiary Serco Geografix Ltd will pay a fine of 19.2 million pounds together with 3.7 million pounds related to the UK Serious Fraud Office's investigations into allegations of wrongful billing which were the subject of significant concern in 2013. The allegations have now been concluded without any criminal charges against Serco.
The fine was discounted by 50% as a result of the company's self-reporting, as well as its cooperation with the investigation.
Meanwhile, the Serious Fraud Office or SFO said that a Deferred Prosecution Agreement or DPA with Serco Geografix Limited or SGL has been approved in principle by Justice William Davis. On 4 July 2019, the SFO will apply for final approval of the DPA before the same judge at Southwark Crown Court.
As per the terms of the proposed DPA, Serco Geografix has taken responsibility for three offences of fraud and two of false accounting committed between 2010 and 2013 related to the reporting to the UK Ministry of Justice or MoJ of the levels of profitability of Serco's Electronic Monitoring or EM contract. The issues were reported by Serco to the SFO and the MoJ in November 2013.
No damages or disgorgement of profit will be payable to the MoJ because the SFO has agreed that Serco has already fully compensated the Department in respect of the offences as part of a 70 million pounds settlement paid by Serco to the MoJ in December 2013.
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