Ministers warned over 'botched' plans to privatise court fines collections

Exclusive: MoJ faces anger from businesses over claims the tender for the £290m deal is being skewed in favour of a single national contract

David Lidington arrives at Downing Street in London (PA)

The Ministry of Justice has been accused of presiding over “another botched” tender on a deal that could allow private firms to arrest people who dodge court-imposed fines.

Under contracts believed to be worth £290m, powers to detain people for failing to pay fines and community penalties would be handed from civilian enforcement officers employed by Her Majesty’s Courts and Tribunal Services (HMCTS) to private security officials.

The tender document – published quietly by the MoJ in August – said it would explore the “potential transfer of service of all warrants” from civil service officials, widening the powers available to private bailiffs.

Business insiders believe the tender has been skewed to favour a single national contract for a large firm over smaller local providers, prompting questions over the competitiveness and transparency of the process.

The MoJ has come under fire in the past over the outsourcing of contracts to private security firms such as Serco and G4S, the latter of which won a multi-million contract for electronic tagging of offenders despite being investigated for overcharging the Government for similar services.

An industry insider told The Independent: “Moving to one national contract for the services of approved enforcement agencies [AEAs] is unprecedented when you think about the structure of the current market.

“Regional contracts delivered by multiple suppliers will allow for more flexibility and offer more bespoke solutions to specific regional challenges.

“That model would also, through competition, improve collection rates and consequently increase revenue to the taxpayer.

“The Government should stick to regional lots for AEA services to maintain the effectiveness and integrity of the justice system and to avoid yet another botched public tendering exercise.”

The plans come after a failed attempt to outsource the collection of court fines to an American conglomerate cost the taxpayer nearly £9m in 2015, according to figures released to Parliament.

Shadow Justice Secretary Richard Burgon urged the Government to abandon the “flawed idea”, which he said would put more vulnerable people at risk of becoming victims of rogue private bailiffs.

He said: “From the growing failures in the part-privatised probation system to the scandal surrounding G4S tagging contracts, the Conservative Government’s obsession with privatisation has already caused enough harm to our justice system.

“The Government has previously wasted millions of pounds of taxpayers’ money trying to privatise enforcement. The concerns already being raised about this tender process underline why the Government should never have resurrected this flawed idea.

“It should scrap these plans to outsource civilian enforcement, which risks more and more people becoming victim of rogue private bailiffs, as weaker oversight is combined with pressure to maximise profits.”

A Ministry of Justice spokesperson said: “HM Courts and Tribunal Services upholds high standards in its procurement process in line with Cabinet Office guidance to ensure there is no inbuilt bias.

“It is designed to ensure a fair and transparent outcome which delivers the best possible deal for the taxpayer.”