Feeds

Serco CEO walks the plank as firm fights off Ministry of Justice probe

Beleaguered firm plonks US boss into the hotseat

Next gen security for virtualised datacentres

The CEO at scandal-hit outsourcing monster Serco has quit as the company lifts the covers off its 'corporate renewal programme' designed to persuade the UK government that it's fit to manage public sector contracts.

Back in August, Serco confirmed British cops are probing allegations over fraud related to its Prisoner Escort and Custody Services contract with the Ministry of Justice amid claims it overstated operational data.

At the time the MoJ said it did not suspect "systemic malpractice" up to board level, though it wanted to see evidence that Serco intended to be more open about its work with government.

Despite this, Chris Hyman has brought his eleven year reign at the top of Serco to an abrupt end, with ED Casey, who has run Serco's Americas division since 2005, taking over with immediate effect.

"I have always put the interests of Serco first," said Hyman in a statement. "At this time, nothing is more important to me than rebuilding the relationship with our UK government customers. In recent weeks it has become clear to me that the best way for the company to move forward is for me to step back.”

The MoJ alleged earlier this year that there was a disparity between Serco's performance data in the Prisoner Escort and Custody Service contract and the "actual situation on the ground".

Serco records showed prisoners had been delivered to court on time, when "in fact they were not", said the MoJ, which added it wanted to see clear signs that this "systemic malpractice" has been addressed.

UK government accounts for roughly a quarter of Serco's revenues. It warned that the firm will win no further contracts until this issue is resolved and steps taken to prevent similar things from happening again.

Serco has split its UK and Europe division in two, with one focused on the UK Central Government customer and the other on the wider public sector, in a bid to increase transparency.

It also claims to have strengthened contract level governance, recruited three additional non-exec directors to its board, taken on a group general counsel and updated its code of conduct, values statement and governing principles.

The MoJ reviews of the company continue. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Super Cali signs a kill-switch, campaigners say it's atrocious
Remote-death button bad news for crooks, protesters – and great news for hackers?
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
Felony charges? Harsh! Alleged Anon hackers plead guilty to misdemeanours
US judge questions harsh sentence sought by prosecutors
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.