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07.01.02
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Group 4 Falck Corporate Crimes Privatisation ‘We lead the privatisation programmes in both the prison services and the court services. We pioneered all theses things’ Jim Harrower, Group Chief and Operating officer of the executive management board[19]. Group 4 Falck’s role in privatisation, and the mismanagement of privatised sectors can in itself be seen as a corporate crime. Wherever private companies can make a profit, Group 4 Falck is there; schools, prisons, prisoner transport, asylum detention, etc. Group 4 has also tried to bid for the running of train services. It was however sent back to the drawing board with its bid for Central Trains in February 2001[20]. Although keen to cash in on public money, Group 4 is not as keen to contribute to the public good. The ultimate holding company of Group 4 (before it merged with Falck) was based in the Dutch Antilles, a tax haven[21]. If any doubt remains about the altruistic nature of Group 4 Falck’s activities, the following quote from its annual report says a lot about the company trying to take over our public services: ‘However, Group 4 Falck considers its most important social responsibility to be ensuring that the company has a good and sound financial position and preserves the ability to generate growth and create jobs.’[22] Below some of their projects in privatisation are described. Schools The outsourced education market is already worth more than £2.5bn[23]. Group 4 Falck is mostly cashing in on the privatisation of education through Ensign, a joint venture with Tribal Group. Tribal group provides support services and training to the education sector. It owns SfE, an online education provider that covers around 70% of secondary schools and provides online training to around 20,000 teachers[24]. Ensign bids for contracts to intervene in poorly performing local authorities. Ensign withdrew from its bid for a contract in Waltham Forest after claims that it had offered £5,000 to two consultants working for PPI if the bid was successful. PPI is owned by Tribal and provided management support to Waltham Forest[25]. When Henry Pitman of Tribal Group was asked about the suitability of its partner in Ensign he told the Financial Times that its experience with young offenders would be useful, "They have a lot of experience in dealing with difficult pupils". [26] In education, Group 4 won a £12 million contract in 1996 to administer the inspection of up to 20,000 nursery schools and playgroups participating in the then Conservative government’s controversial nursery voucher scheme[27]. The NUT and teachers groups were sceptical about Group 4’s suitability[28]. Group 4 Managed Services now does the annual inspection of and reporting on educational provision at over 8000 nurseries on behalf of Ofsted[29]. Group 4 Falck has a £12 million PFI contract with Wiltshire County Council for building and operating a secondary school in Chippenham, including support services such as catering and sports facilities, and extensions to two other secondary schools[30]. Asylum and racism Campsfield House is the largest immigration detention centre in the UK holding around 200 detainees (over 80% of them are asylum seekers). The detainees are held without charge, time limit, or proper access to legal representation. It is basically run like a high security prison for people coming to the UK seeking political asylum. The detention centre has been criticised repeatedly by campaigners and government officials, both in principle, and for the way Group 4 is managing it. Official reports on Campsfield both in 1995 and 1998, by two different inspectors found fear, boredom and stress among the inmates.’ [31] In 1994 rioting broke out in Campsfield during which 6 prisoner manageds to escape[32]. In May 1995, following consultation with Home Office, Group 4 set up UK’s first "private riot squads" to deal with future disorder at immigration detention centres[33]. In August 1997 the conditions of Campsfield erupted into a riot after detainees thought one of the inmates were being strangled by Group 4. The trial that followed completely collapsed because of the lies of the Group 4 guards. The whole event was covered by Corporate Watch Issue 8. The article can be read online at: www.corporatewatch.org.uk/magazine/issue8/cw8g4.html. Group 4 Amey Immigration Services Ltd (Amey and Group 4 in partnership) have the contract to design, build and operate (for 6 years) a 900-bed detention centre at Thurleigh in Bedford for the Immigration Service. The contract is worth in the region of £80 million[34]. Group 4 has also been accused of discrimination against job applicants. Harbhajan Birdi’s job application was rejected, when he resubmitted an identical application changing his name and nationality to John Smith, British, he was short- listed for interview. Mr Birdi accused Group 4 of racism. An Industrial tribunal later upheld his racial discrimination claims. Group 4 agreed an out-of- court settlement[35]. The above is by no means any comprehensive overview of Group 4 Falck’s worldwide involvement in practices surrounding racism and asylum issues. In Belgium, for example, Group 4 Securitas has the noble job of searching for immigrants hidden in lorries bound for England[36]. Prisons and prisoner transport Group 4 Falck runs three prisons in the UK on behalf of the Prison Service: HM Prison Wolds in East Yorkshire, HM Prison Altcourse in Liverpool, and HM Prison Rye Hill on the Warwickshire / Northamptonshire border[37]. They also run two juvenile prisons: Medway Centre and Onley. Group 4 Falck's prisons and escort service earned them £86m a year (1999)[38]. When Group 4 became the first company to take on private prison escort ion the UK, they became the laughing stock of the nation after managing to lose seven prisoners in one week[39]. Nowadays their involvement is less of a laughing matter and more a cause for concern. Juvenile Prisons (The Medway Centre and Onley) Britain’s first child prison (12-17 year olds), ‘The Medway Centre’, is run by Rebound ECD (Education Care and Discipline), a subsidiary to Group 4 Falck. Rebound also runs a child prison (12-14 year olds) at Onley, Northamptonshire. A report on the Medway Centre published in 1999 by the Social Service Inspectorate (SSI) found that staff were using unauthorised methods to restrain the inmates up to 150 times per month. The unauthorised neck and wrist locks used by the staff are against medical advice and the centre’s own rules[40]. The Medway Centre has also been criticised by the social services for using excessive force when trying to contain a riot there[41]. The special education programmes were reported to have ‘simply failed’, and the centre was more likely to strengthen criminal behaviour than lessen it[42]. A fine of £68,000 was imposed at Medway for failureof service and £ 638,000 was wirtheld for servicers not provided at Medway and Wolds[43]. HM Prison Altcourse (Liverpool) The Altcourse prison in Fazakerley, built under the PFI, recovered all its costs within two years for the Group 4 Securitas and Tarmac Construction lead consortium. This will give them 23 years of profit from running the prison. The huge profitability, is largely due to a refinancing deal that increased the expected return on capital from 13% to 39%. This has made it one of the most profitable contracts for any company with the government[44]. If Group 4 has managed the financing of the prison better than the government expected, the same can hardly be said for the running of the prison. They have received £28,000 in fines for failure of service at Altcourse[45]. HM Prison Buckley Hall The prison Buckley Hall was returned to the public sector after 5 years of management by Group 4. The reason was said to be the prison service bid being more cost effective and providing higher standards of safety and security[46]. In the early days of Group 4 running the prison, they were criticised by the Prison Reform Trust for staff shortages and inexperience[47]. Group 4 managers form Buckley Hall were offered new jobs at the child prison at Onley[48]. HM Prison Wolds (Humberside, East Yorkshire) Wolds Prison opened for remand prisoners in April 1992. Group 4’s management contract was at that point worth £6m[49]. A little more than a year later, Judge Stephen Tumim, the Chief Inspector of Prisons, condemned the regime at the Wolds prison. Complaints included: ‘corrupting lethargy’, and high incidence of violence and drug abuse[50]. Frances Crook, director of the Howard League for Penal Reform was refused entry to the Wolds after having criticised the prison after an earlier visit[51]. In March 1995 the inquest into the death of Darrell Barson ruled suicide. Barson was on 15 minute suicide watch, but had not been seen for several hours before his death. The prison doctor said staff were too inexperienced to tell suicidal behaviour from signs of drug abuse, and that 90% of the prisoners he saw were "drugged up to the eyeballs".[52] Rye Hill (Warwickshire) Group 4 Falck and Carillion manages this prison (capacity 600). In April 2001, according to the Association of Prisoners, a teacher in the prison was not allowed to take her copy of the Guardian with her into the education unit. Mr Hirst, General Secretary of the Association of Prisoners speculated that this might be because the Guardian reported about three prisoners’ High Court case for prisoners being given the right to vote[53]. Prisoner Transport In May 1993 drunk prisoner, Ernest Hogg, chokedf on his own vomit whilst in the care of Group 4 Court Services. Hogg lay unconscious and unnoticed in the back of a prison van for several hours before he died. Six Group 4 staff had their operating certificates suspended by Home Office[54]. Group 4 were later found guilty of "lack of care".[55] In August 1993, Home Office inquiry criticises Group 4 for using excessive restraint in handling a prisoner. Despite her asthma and low security risk status she was handcuffed and locked in a van cell for two hours[56]. Worldwide They also have prison contracts in Australia and South Africa (the 3000 bed Bloemfontein prison, is the first prison built, financed and designed by the private sector in South Africa)[57]. Opened in August 1997, Port Philip (Australia) has been blighted by drug abuse, violence, and suicides. 60 staff resigned in the first 7 months. In March 1998 a serious riot at Port Philip prison, Melbourne, was initially described by Group 4 management as a "passive demonstration". Group 4 was severely criticised for cost-cutting, understaffing, inexperience and bureaucratic error[58]. Corruption Group 4 was in the centre of a corruption scandal at the European Commission in Brussels. It was alleged that Group 4 beat the 12 other companies competing for the contract to run the Commission’s security because it was allowed to change its bid after the submissions deadline. The investigation into the matter by the commission found that there was ‘strong circumstantial evidence’ that the bid had been manipulated[59]. After Group 4 had secured the contract, it changed the terms and conditions of it so that they increased its profits. It later admitted to overcharging inadvertently. The Group 4 spokesperson tried to blame the managers of the security services at the commission, saying they were a bunch ‘nasty and very right-wing Belgians’. For example, they made Group 4 put ghost workers on its payroll (something Group 4 does not deny). In this way retired Belgian police officers were given second careers in the European security services. Group 4’s defence to these allegations has largely been; ‘we were told to hire these people by the managers of the security service, so we did’ (Group 4 spokesperson)[60]. Spying on the world Group 4 Falck is part of consortium of three firms who got a 30 year contract to build and run the new £300 million GCHQ building (Britain’s spy centre to monitor communications worldwide)[61]. Eco-Warrior Bashing In September 1994 Group 4 agreed not to use excessive force at the Stanworth Valley protest camp after an injunction application made by Chris Maile, and son Philip, of local Green Party. In October of the same year, Philip Mail was hospitalised after a Group 4 security guard illegally used a pressure point hold to the back of his head. He spent three weeks in a neck collar[62].
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| Footnotes [19] The Great Escape, Sally Weale, Guardian, 15 November 1999 [20] Hemscott Investment Analysis, www.hemscott.com/hstoday/focus/nationalexpress_080201.htm [21] The Great Escape, Sally Weale, Guardian, 15 November 1999 [22] Group 4 Falck, Annual Report 2000, p. 40 [23] Next stop schools, Oliver Burkenham, Guardian, 26 June 2001 [24] 'Schools: profits for the taking', Labour Research, August 2000, available online at: www.cix.co.uk/~frizinghall/privatisation/information/privatising.pdf [25] Next stop, schools, Oliver Burkeman, Guardian, 26 June 2001 [26] Town halls face revolution over education services, Financial Times, 16 May 2001 [27] 'Schools: profits for the taking', Labour Research, August 2000, available online at: www.cix.co.uk/~frizinghall/privatisation/information/privatising.pdf [28] The Guardian, 13 August 1996 [29] Group 4 Managed Services' homepage, viewed 29 November 2001, www.group4managedservices.com/html/ProjectManagementServices.htm [30] 'Schools: profits for the taking', Labour Research, August 2000, available online at: www.cix.co.uk/~frizinghall/privatisation/information/privatising.pdf [31] Behind the wire, Andy Beckett, Guardian, 22 May 2001 [32] The Great Escape, Sally Weale, Guardian, 15 November 1999 [33] The Guardian, 10 May 1995 [34] Amey's homepage, viewed 29 November 2001, www.amey.co.uk/context_gen.htm?html/news_147.htm [35] Telegraph 20 June 1995 and The Times, 1 September 1995 [36] The Frontline, Guardian, 22 May 2001 [37] Group 4 Falck, Annual Report 2000, p. 38 [38] The Great Escape, Sally Weale, Guardian, 15 November 1999 [39] The Great Escape, Sally Weale, Guardian, 15 November 1999 [40] Child jail 'overuses force', Alan Travis, Guardian, 15 January 1999 [41] The Great Escape, Sally Weale, Guardian, 15 November 1999 [42] Child jail 'overuses force', Alan Travis, Guardian, 15 January 1999 [43] The Great Escape, Sally Weale, Guardian, 15 November 1999 [44] Private jail makes huge profits, David Hencke, Guardian, 4 July 2001 [45] The Great Escape, Sally Weale, Guardian, 15 November 1999 [46] The Great Escape, Sally Weale, Guardian, 15 November 1999 [47] Group 4 loses prison contract, Alan Travis, Guardian, 23 October 1999 [48] Group 4 loses prison contract, Alan Travis, Guardian, 23 October 1999 [49] The Independent, 26 June 1992 [50] The Times, 26 August 1993 [51] The Great Escape, Sally Weale, Guardian, 15 November 1999 [52] Yorkshire Post, 8 and 10 March 1995 [53] Group 4 bands the Guardian on Prison Education Unit, Press release from the Association of Prisoners, 10 April 2001. [54] Telegraph 10 May 1993, The Observer 16 May 1993 [55] The Independent, 16 February 1994 [56] The Guardian, 13 August 1993 [57] The Great Escape, Sally Weale, Guardian, 15 November 1999 [58] The Age, 14, 25 and 26 March 1998 [59] Who'll jail the jailers?, Nick Cohen, Guardian Unlimited, 21 March 1999 [60] Who'll jail the jailers?, Nick Cohen, Guardian Unlimited, 21 March 1999 [61] The Great Escape, Sally Weale, Guardian, 15 November 1999 [62] Green Party press release, 11 September 1995 |