From 2012: Private Eye on Incompetence, Profiteering Bureaucracy and Racism in G4S

This is also from the Eye for the 20th April – 3rd of May 2012.

Outsaucing News

G4S, which earns most of its money from the taxpayer, has docked its chief executive Nick Buckle’s bonus over a messed-up bid to take over a Danish cleaning company that cost his firm £55m last year. But never fear: he still get his basic £1.9m salary.

G4s will also still have plenty of cash to pay for the cock-up, plus Buckles’ inflated pay7, since it keeps winning major public service contracts here in the UK.

Last month the UK Border Agency awarded it “prime” contracts worth around £300m to run asylum transport and accommodation in two of the five national regions. In true Big Society fashion, G4S will itself outsource much of this work to local charities and companies (much as workfare schemes are farmed out by A4E).

Despite the extra layers of management and contracting, not to mention the bumper executive pay and the profits demanded by shareholders that such deals entail, UKBA still thinks it will save £150m through the £620m contracts without services suffering.

In January, the home affairs select committee concluded, after a string of scandals including the death in G4S custody of Jimmy Mubenga and racist behaviour among guards, that the government must not “wash its hands of responsibility for detainees just because the service is contracted out”. But by outsourcing prime contracts to bungling Buckles and co a few weeks later, and for his firm to then subcontract the work in return for a decent fee, this seems precisely what the government is doing.

This shows what such Public-Private Partnerships entail: layers of bureaucracy, in which different companies and their shareholders expect a profit, which would be unacceptable in a state-owned enterprise; inflated salaries for chief officers, and massive cuts and savings for the funding allocated for the service, resulting in poor performance. But then, the actual quality of service seems to be very much a secondary consideration. The real reason for such partnerships is to give state contracts to private enterprises run by Tory donors and providing jobs for Tory politicians and apparatchiks.

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4 Responses to “From 2012: Private Eye on Incompetence, Profiteering Bureaucracy and Racism in G4S”

  1. jeffrey davies Says:

    fingers in the till torys never change

  2. Mike Sivier Says:

    Reblogged this on Vox Political.

  3. Graham Armstrong Says:

    Twittered via @cwugraham. Are we living in the most corrupt political age where bare faced liars run the country as they laugh all the way to their off shore banks with our money? It would seem so.

  4. chris Says:

    This company is racist amongst employees. Whites need not apply

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