New firm takes over electronic monitoring
Contracts for the electronic monitoring of offenders and others will be handed over to Capita on an interim basis at the end of the financial year.
Capita is bidding to win the Government contracts permanently. Other bidders include Buddi, Astrium and Spanish telecommunications giant Telefonica. Permanent contracts for GPS tagging are expected to be awarded next year.
Capita will continue to use equipment from Serco and G4S.
Both companies withdrew from competition for future contracts.
G4S and Serco are currently being investigated by the Serious Fraud Office (SFO) after an audit by PricewaterhouseCoopers suggested that both firms overcharged taxpayers for tagging criminals who were dead, in jail or overseas.
The Ministry of Justice revealed that the government was overcharged "tens of millions of pounds" in botched contracts stretching back to 2005.