Serco fined half a million dollars
Corrections boss Ray Smith told Radio New Zealand this morning he was likely to sign off $500,000 worth of penalties, adding that he expects more are to come.
Multinational firm Serco faces a financial penalty of $500,000 after widespread allegations of prisoner mistreatment at Mt Eden Prison in Auckland, which it runs.
Corrections boss Ray Smith told Radio New Zealand this morning he was likely to sign off $500,000 worth of penalties, with more to come.
Last week Corrections announced it would be take over the management of the Mt Eden Prison from Serco.
The announcement came shortly after Serco managing director Paul Mahoney met Corrections Minister Sam Lotu-liga to discuss a string of recent controversies over prison violence and organised boxing fights.
"There are also other options potentially available to me under the contract. These include a final warning and early termination of the contract," Mr Smith said.
He added financial charges “may be imposed” because of the events that have surfaced in the past week.
“These are likely to be substantial," he said.
On Saturday, Prime Minister John Key left open the possibility of cancelling Serco’s contract but said the failures did not give him cause to reconsider the government’s push to use more private providers in health, state housing, education and welfare.
Labour’s corrections spokesman Kelvin Davis has been critical of SERCO’s management of Mt Eden Prison, as well as the government’s reaction to the saga.
He told NBR Radio last week that the private prison experiment has been an “utter failure in New Zealand.”
He says the government should have known better, as Serco has a “dodgy reputation” overseas.
“[The government] should have read the tea leaves and never even gone there with Serco,” he says.
Last week, Mr Davis Tweeted that Serco is entitled to $1.2 million in performance-related bonuses.
“I say give it to the people who have been abused in Serco’s care,” Mr Davis tweeted.
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Jason Walls
Mon, 27 Jul 2015
Mon, 27 Jul 2015
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Serco fined half a million dollars
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