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Firms scoop up contracts despite fraud investigations

The coalition government continued to pour millions of pounds of taxpayers’ cash into discredited security firms Serco and G4S despite the fact that the firms were under investigation for fraud.

A high-powered Commons committee has expressed amazement today that the Ministry of Justice, Ministry of Defence, Department of Health, Department for Business, Innovation and Skills and HM Revenue and Customs all continued to award the two firms work while a Serious Fraud Office inquiry was continuing.

The inquiry was launched after the discovery that the firms had overcharged the government by tens of millions of pounds for services.

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