G4S wins first deal since fiasco

Beleaguered security giant G4S has won its first British contract since failing to provide enough guards for the London Olympics.

The £20m, five-year deal with the Scottish government to manage the electronic tagging of offenders comes at a crucial time for G4S. It has already taken a £50m hit in relation to the games and yesterday the Home Affairs Committee called on it to forgo its £57m management fee.

Committee chairman Keith Vaz said: "The largest security company in the world, providing a contract to their biggest UK client, turned years of carefully laid preparations into an 11th-hour fiasco."

G4S responded to the highly critical findings by stressing that its "final financial settlement" is under discussion with the Games' organising committee, and that the £57m did not include any profit, only costs incurred such as wages and IT expenditure.

The group also revealed that PricewaterhouseCoopers, the big four accountant, has almost completed a review into what went wrong with the Olympics contract. The findings, to be announced in the next 10 days, could see chief executive Nick Buckles lose his job.