British outsourcing group Capita will take over contracts to tag criminals from rivals G4S and Serco on an interim basis by April next year, the British government said yesterday.

Both G4S and Serco are being investigated by the Serious Fraud Office after an audit showed they had charged for tagging criminals who were either dead, in prison or had never been tagged in the first place.

As a result, Britain is reviewing its biggest contracts with the two firms and has barred them from new central government work pending the outcome. G4S and Serco hold some of Britain’s largest outsourcing contracts, and generate 10 per cent and 25 per cent of their revenue, respectively, from the central government.

Justice secretary Christopher Grayling said Capita will now deliver the service on an interim basis. – (Reuters)