Disgraced firm Serco has agreed to repay the Government £68.5m for overcharging for tagging criminals, the Justice Secretary said.
Both Serco and G4S were found to have overcharged the taxpayer for monitoring criminals in a contract dating back to 2005.
The Serious Fraud Office (SFO) opened a criminal investigation after it emerged G4S and Serco overcharged the Government for tagging offenders, some of whom were found to be dead, back in prison or overseas.
Last month the boss of G4S admitted to MPs that the company had failed to "tell the difference between right and wrong", while Serco chairman Alistair Lyons told the Commons Public Accounts Committee it was "ethically wrong".
The Government has already rejected a £24 million offer from G4S to settle the overcharging scandal with officials vowing to "pursue all possible avenues" to recoup more taxpayers' cash.
Serco has agreed to pay the sum to the Government to reimburse money owed on the contract and for other costs incurred such as the investigation.
Both G4S and Serco have been banned from bidding from probation office contracts and the remainder of their contract for monitoring criminals has been transferred to rival firm Capita.
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