Serco: Police To Probe Prison Firm Over 'Fraud'

Security firm Serco faces a police fraud investigation over its £285m prison escorting contract.

Serco staff allegedly recorded prisoners as having been delivered ready for court - a key performance measure - when in fact they were not, the Ministry of Justice (MoJ) said.

The contract, which covers prison transfer services in London and East Anglia, has been put under administrative supervision with immediate effect.

Justice Secretary Chris Grayling said: "It's become very clear there has been a culture within parts of Serco that has been totally unacceptable, and actions which need to be investigated by the police.

"We have not seen evidence of systemic malpractice up to board level, but we have been clear with the company - unless it undertakes a rapid process of major change, and becomes completely open with Government about the work it is doing for us, then it will not win public contracts in future.

"The taxpayer must know that their money is being properly used."

Both the MoJ and Serco's directors have asked City of London police to investigate the actions of the staff working on the prison escorting contract. 

Evidence of potentially fraudulent behaviour emerged as part of the audit work announced by Mr Grayling in July.

The audit work came in the wake of an electronic tagging scandal, in which G4S and Serco were both accused of overcharging the Government for monitoring offenders.

In light of the new findings, Serco have agreed to repay all past profits made on the prison escorting contract and to forgo any future profits.

The FTSE 100 giant has told the MoJ that no member of the board had knowledge of the allegedly fraudulent practice.

Chris Hyman, chief executive of Serco Group, said: "The Justice Secretary is right to expect the highest standards of performance from Serco.

"I am deeply saddened and appalled at the misreporting of data by a small number of employees on the contract.

"This is a very serious matter for the customer and for us. We will not tolerate any wrongdoing and that is why we have referred this matter to the police."

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Vodafone Confirms '$100bn' Verizon Sale Talks

Vodafone has confirmed it is in talks with Verizon Communications about selling its stake in their joint US venture, potentially worth more than $100bn (£64.5bn).

The FTSE 100-listed firm owns a 45% stake in Verizon Wireless - America's largest mobile phone operator.

While Vodafone insisted the talks may not lead to a deal, its shares rose 9% on opening as investors welcomed the prospect of a windfall for the company which would amount to one of the largest ever corporate transactions.

While a sale would also boost pension funds, it was unclear whether the Treasury would also benefit.

Confirmation of the discussions came on the day Vodafone and O2 launched their 4G services in the UK.

Verizon Wireless is America's largest mobile operator

It is thought that Verizon wants to pay around $100bn although reports have suggested that Vodafone would press for as much as $130bn (£84bn).

Vodafone has a market worth of just under £100bn, which means the bulk of its value is locked up in a business where it has no day-to-day control.

The Newbury-based company is likely to use the proceeds from any sale on major acquisitions or a return of cash to shareholders.

It said today: "Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications regarding the possible disposal of Vodafone's US group whose principal asset is its 45% interest in Verizon Wireless.

Vittorio Colao is Vodafone's chief executive

"There is no certainty that an agreement will be reached."

Talk of a sale emerged earlier this year when it was reported that Verizon had hired advisers on a possible buyout.

Then, it was suggested that any bid would consist of a roughly 50/50 cash and stock offer.

Joe Rundle, head of trading at ETX Capital said a deal would likely see Vodafone become the "new darling" of the telecom sector.

"Very welcome news for Vodafone," he said.

"This disposal was an overhang in the stock price for some time given the speculation around this and more importantly, it allows the group to pay down its debt.

"In fact, if Verizon buys all of the holding company, it could spare Vodafone from paying as much as $35bn in taxes, another key positive of this proposed disposal."

The potential value of a deal compares with AOL's $164bn (£105bn) takeover of Time Warner in 2001 and Vodafone's own merger with German group Mannesmann in 2000 worth $185bn.

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Co-op Swings To £559m Loss On Bank Troubles

The Co-operative group has swung to a half-year pre-tax loss of £559m amid a writedown of £496m on loans at its troubled banking arm.

The Co-operative Bank alone made a pre-tax loss of £709m in the six months to June and the group said there will be "no quick fixes" as it embarks on a four-year turnaround plan.

The company employs more than 100,000 people, but warned a restructuring of the business makes job losses "inevitable".

Group chief executive Euan Sutherland said: "This has been a very difficult first half for The Co-operative Group and the results highlight both the well-documented challenges faced by The Co-operative Bank and the significant work to do at Group level.

"Importantly, today's announcement also underlines the need for the £1.5bn Capital Action Plan we announced in June to stabilise the Bank, which we reaffirm today and which remains on track."

He said the Co-op has "no plan B" for rescuing the bank and is confident bond holders will accept the current proposals.

He added: "We remain convinced of the considerable potential to be realised across the Group and are confident that we are well placed to restore the Co-operative brand to its rightful place at the heart of communities up and down Britain." 

Mr Sutherland took his position in May and said he has been focused on stabilising the bank since becoming the company's boss.

Banking Group chief executive Niall Booker explained that the business continued to see the withdrawal of corporate deposits, while retail customers remained.

Other parts of the business reported profits, with the Co-op's food group making £117m in the same period.

Related stories:

Former RSA Boss Fronts Bid For Co-Op Arm

Co-Op Bank Toughs Out Customer Withdrawals

Regulator Reveals £27.1bn UK Bank Shortfall

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are staging a fresh wave of strikes in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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Britain Is Boom Destination For Tourists

By David Crabtree, Midlands Correspondent

A record number of visitors are choosing the UK as a holiday destination following the success of the 2012 London Olympics.

There were almost 2.9 million tourists in June, a record for the month, according to the latest figures from VisitBritain.

Data from the Office for National Statistics showed they spent a record £1.84bn in June, an increase of 13% on 2012, which was another record.

There has been a significant rise in the number of people coming from China, the US and various parts of Europe.

Visitors from overseas spent £8.72bn in Britain in the six months to June, up 11% on the same period last year.

But it is not just overseas visitors who have been swelling the numbers.

VisitBritain predicts that over the Bank Holiday 4.5 million Britons will be taking an overnight holiday trip in the UK, a factor helped by a spell of good weather.

In Stratford-on-Avon, the draw of Shakespeare has never been so popular.

Rachel Hudson, from The Shakespeare Birthplace Trust, said: "We have seen a boost due to the success of the Olympics and I think people around the world realise that we have something really special to offer.

"Shakespeare is a worldwide brand and more people want to enjoy the experience in his home town."

Patricia Yates, VisitBritain's director of strategy and communications, said: "The Olympic bounce has well and truly sprung with the best start to a year since 2008.

"This has seen us achieve record-breaking spend figures for 2013 to date and record visitor numbers.

"We are surpassing our spend forecast for 2013, which is testament to the fact that our great campaign has capitalised on the showcasing of Britain through 2012 to turn viewers into visitors.

"Our marketing and promotion of Britain as a great place to visit will ensure we are well positioned to deliver continued growth through 2013 and beyond, achieving positive results for the UK tourism industry and increasing the 2.6 million job supported by the sector."

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are staging a fresh wave of strikes in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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Britain Is Boom Destination For Tourists

By David Crabtree, Midlands Correspondent

A record number of visitors are choosing the UK as a holiday destination following the success of the 2012 London Olympics.

There were almost 2.9 million tourists in June, a record for the month, according to the latest figures from VisitBritain.

Data from the Office for National Statistics showed they spent a record £1.84bn in June, an increase of 13% on 2012, which was another record.

There has been a significant rise in the number of people coming from China, the US and various parts of Europe.

Visitors from overseas spent £8.72bn in Britain in the six months to June, up 11% on the same period last year.

But it is not just overseas visitors who have been swelling the numbers.

VisitBritain predicts that over the Bank Holiday 4.5 million Britons will be taking an overnight holiday trip in the UK, a factor helped by a spell of good weather.

In Stratford-on-Avon, the draw of Shakespeare has never been so popular.

Rachel Hudson, from The Shakespeare Birthplace Trust, said: "We have seen a boost due to the success of the Olympics and I think people around the world realise that we have something really special to offer.

"Shakespeare is a worldwide brand and more people want to enjoy the experience in his home town."

Patricia Yates, VisitBritain's director of strategy and communications, said: "The Olympic bounce has well and truly sprung with the best start to a year since 2008.

"This has seen us achieve record-breaking spend figures for 2013 to date and record visitor numbers.

"We are surpassing our spend forecast for 2013, which is testament to the fact that our great campaign has capitalised on the showcasing of Britain through 2012 to turn viewers into visitors.

"Our marketing and promotion of Britain as a great place to visit will ensure we are well positioned to deliver continued growth through 2013 and beyond, achieving positive results for the UK tourism industry and increasing the 2.6 million job supported by the sector."

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Microsoft Boss To Leave Amid 'New Direction'

Microsoft Revamp Amid PC Decline

Updated: 3:28pm UK, Friday 23 August 2013

By Thomas Moore, Sky News Science Correspondent

Microsoft has struggled as the PC market has declined.

Five years ago more than 90% of computers ran a version of the Windows operating system, according to tech analysts Forrester.

By 2012 - with Apple and Google dominating mobile computing - it was found on just 30% of devices.

In an effort to revamp its image for the touchscreen era, the company launched Windows 8 late last year.

But the lack of the iconic 'start' button and the new interface of tiled apps irritated users tied to a keyboard and mouse.

It's now done a U-turn and a soon-to-be-launched update - Windows 8.1 - will restore the start button.

Microsoft will hope the tweaks will breathe life into the operating system.

It has failed to convince PC users to upgrade so far, despite a marketing budget that's estimated to top $1bn  (£600m).

Eight months old and Windows 8 is still only found on 5.4% of computers, according to data from Net Applications.

Windows 7 still dominates, with a share of 44.5%.

The malaise is affecting PC makers.

HP recently reported that sales of desktop and notebook computers had slumped by 8% in a year.

So the stakes are high for Microsoft and the industry that relies on its software.

If the new-look Windows fails to stop the slide in sales many will ask whether the PC has a future.

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