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Australia PM 'won't be blackmailed' after bloody PNG riot

Prime Minister Tony Abbott Thursday said he will not succumb to "moral blackmail" over an Australian detention centre on Papua New Guinea, as graphic witness accounts of recent violence told of "blood everywhere". Unrest at the Manus Island camp this week left an Iranian man dead and more than 70 injured as tensions flared among inmates about their fate under Australia's hardline asylum-seeker policies. Canberra has sent the head of its military-run Operation Sovereign Borders, Angus Campbell, to the island to assess security and work out what happened.

UK minister sees 'stronger' G4S after review

(Reuters) - The British minister who launched a review into G4S <GFS.L> and Serco's <SRP.L> government contracts scandal said he expects the companies to emerge "renewed and stronger" from the process. The political spotlight is firmly on Britain's use of private outsourcing groups to run public services like prisons and hospitals after a series of high-profile contract failures.

Scandal-hit Serco's shares plummet after profit warning

By Christine Murray and Kate Holton LONDON (Reuters) - Serco <SRP.L>, the embattled contractor accused of overbilling the British government, revealed the extent of its problems by announcing heavy one-off charges and a profit warning on Thursday. The company, which has a temporary CEO and is the subject of seven investigations, said operating profit would fall in 2013 and 2014, setting its shares on track for their worst day of trading since July 2002.

G4S and Serco woes deepen with British fraud investigation

By Christine Murray LONDON (Reuters) - Britain's Serious Fraud Office (SFO) has opened a criminal investigation into G4S <GFS.L> and Serco's <SRP.L> electronic monitoring contracts, increasing pressure on the embattled contractors. The SFO investigators will now decide whether to take the companies to court after an audit showed that, under a 2005 government contract, they charged for tagging criminals who were either dead, in prison or had never been tagged.

UK fraud watchdog to investigate Serco, G4S contracts

LONDON (Reuters) - Britain's Serious Fraud Office said on Monday it had opened a criminal investigation into G4S <GFS.L> and Serco's <SRP.L> electronic monitoring contracts. The SFO investigators will now decide whether to prosecute the firms charging for tagging criminals under the contracts. In July, the British government placed all contracts held by G4S and its rival Serco under review after an audit showed they charged for tagging criminals who were either dead, in prison or never tagged in the first place.

S.Africa probes alleged prisoner abuse by British contractor

South African authorities on Monday launched a probe into allegations of abuse of inmates at a maxium security prison run by the British security firm G4S, an official said. A researcher at the Univesity of Witwatersrand's Justice Project said her year-long investigation revealed that inmates considered "unruly or difficult" at the Mangaung prison near the central city of Bloemfontein were subjected to electric shocks or made to take anti-psychotic drugs.

Embattled G4S rejects $2.5-billion offer for cash delivery unit

By Brenda Goh LONDON (Reuters) - G4S <GFS.L>, the world's largest security services firm which is fighting to restore its reputation after a series of contract scandals, has rejected a $2.5-billion offer for its cash transport business. G4S said on Monday that the 1.55-billion pound bid from British private equity group Charterhouse Capital Partners <CHCAP.UL> was "highly opportunistic" and undervalued the unit, a move which garnered support among analysts and shareholders.

European stock markets dip

European stock markets fell on Monday as traders looked ahead to a key policy meeting of the US Federal Reserve due this week. Trading volume was down in London as heavy storms in Britain kept many dealers away from their desks. "The pre-emptive action taken by various train companies ahead of the expected stormy weather has meant a somewhat deserted City of London this morning, and this is being reflected in volumes so far," said David Jones, chief market strategist at IG trading group, in reference to the British capital's financial district.

Security firm G4S says rejects part-takeover bid

G4S, the British security services firm, said Monday it had rejected a bid of £1.55 billion for its unit responsible for transporting and storing cash and valuables on behalf of businesses. G4S revealed that it had last week received an offer for its cash solutions business, equivalent to $2.51 billion or 1.81 billion euros , from British private-equity group Charterhouse Capital Partners.

Serco boss quits as firm seeks new start after scandals

By Christine Murray and Neil Maidment LONDON (Reuters) - The chief executive of outsourcing firm Serco has quit as part of a major reorganisation aimed at rebuilding its reputation with its biggest customer, the British government, following a series of scandals.
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