Linklaters takes share of £5m investigation fees as G4S settles with MoJ

Linklaters and PricewaterhouseCoopers (PwC) have taken combined fees of £5m for their investigation into allegations G4S engaged in false billing practices between 2005 and 2013.

G4S and the Ministry of Justice (MoJ) yesterday confirmed they had reached a £109m settlement with G4S after the security group overcharged the government for electronic monitoring services.

The total settlement amount, which excludes VAT, is made up of a cash payment of £76m and credits for services previously provided of £33m.

Linklaters was drafted in to lead the review in June, and was asked to assess whether there was evidence of dishonesty or criminal conduct by employees who billed the MoJ.

The review has not identified evidence of dishonesty or criminal conduct, G4S said.

Despite this, G4S is facing a Serious Fraud Office (SFO) probe on the same matter, with magic circle firm again brought in to advise the group.

Linklaters’ team has been led by commercial litigation partner Tom Lidstrom and corporate partner Richard Godden, who also advised G4S on issues arising from problems with its Olympic contract in 2012.

“The way in which the EM contract was billed was not consistent with the contract or the group’s values and we have apologised to the MoJ and the Government,” said G4S chief executive Ashley Almanza, in a statement.

“We believe that the conclusion of this matter, together with the actions we are developing on corporate renewal, will enable us to maintain our position as a strategic supplier to Government.”