G4S faces fresh investigation into accounting allegations

  • @lucytobin

G4S is facing more damaging allegations after it emerged an ex-employee has taken the scandal-struck FTSE 100 security giant to court, accusing it of irregular accounting to play down its profitability

G4S, which is the target of a criminal investigation for overcharging the Government by millions of pounds on a tagging contract, faced court proceedings from a whistleblower, Malcolm Batki, former finance director of G4S Integrated Services.

He claimed G4S created an internal charge of as much as £4 million at its Care & Justice division to conceal its profitability. That allegation is being probed by the Serious Fraud Office, the Financial Times said. The SFO is already probing claims G4S overcharged taxpayers £24 million for tagging and prison contracts.

Batki lost a case of unfair dismissal against G4S in 2012. He claimed that former chief executive Nick Buckles engaged in insider trading in 2009 when he exercised share options a month after asking subsidiaries to “post the best possible results” and postpone “major one-off issues” in the company’s interim accounts, according to the tribunal judgment.

G4S added: “Regrettably, Mr Batki has been pursuing G4S unsuccessfully since his role was made redundant in January 2011. The share dealing was... authorised in accordance with the G4S share dealing code.”