Security giants G4S and Serco are set to lose their electronic tagging contracts with the Ministry of Justice after an investigation into fraudulent claims surrounding overcharging.

Capita is set to take over the running of the electronic tagging contract of criminals on an interim basis according to Justice Secretary Chris Grayling, with the firm looking to run the contract permanently.

Mr Grayling said: "We have signed a contract with Capita to take over the management of the existing electronic monitoring services on an interim basis.

"This will mean that management of these services, which are now operated by G4S and Serco, will transition to Capita by the end of the current financial year.

"Under these arrangements, Capita will be using the systems and equipment of G4S and Serco, but the two companies will no longer have a direct role in delivering the service on the ground."

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