Prisoner transfer firm GeoAmey handed out £5 million to shareholders despite wreaking havoc in the Scottish justice system with inmates being late to court.
The Sunday Mail can reveal the huge dividends being paid by the company which has been responsible for a catalogue of more than 14,000 delays in criminal hearings.
GeoAmey, which has a £238 million contract to escort prisoners, has already been fined £4 million over performance issues and was handed money by the Scottish Government to try to prop up its failing service
A total of £1.8 million of taxpayers’ cash has been granted to the firm this year with a £2.2 million top-up due next year.
But newly published accounts reveal the Manchester-based business, which also has a prisoner escort contract with the Ministry of Justice in England, paid dividends of £5 million to shareholders during 2023.
And six members of senior management earned a total income of £846,000 – an average of £140,000 each.
Last night Scottish Liberal Democrat justice spokesperson Liam McArthur MSP called on the Justice Secretary to hold GeoAmey to account.
He said: “It seems that GEOAmey is being rewarded for providing a woefully sub-standard service. Court time has been wasted and victims, defendants and court staff have been put through the mill.
“It’s no wonder that the firm has repeatedly failed to shape up. It knows that all it will get is an ineffectual slap on the wrist from the Scottish Government.
“The Justice Secretary must put a halt to this. She has a responsibility to ensure that Scotland’s justice system is safe, effective and well-resourced. That should include kicking GEOAmey to the curb unless they start to deliver.”
The accounts also revealed the firm’s total revenue for the year (2023) was £108.2million and it made a profit after tax of £3.7 million – an increase of more than £1.1 million on the previous year.
In 2021, the firm reported that profitability was “adversely affected” by the SCCPES (Scottish Court Custody and Prisoner Escorting Services) contract, “which was loss-making during the year”. In 2022, it added, there was a larger loss.
The report blamed labour market issues leading to reduced staff availability, “and the impact of performance penalty regime within the contract against increasing and uncapped customer demand”.
An Audit Scotland report last year revealed the Scottish Prison Service (SPS) had taken action to support improvement in GeoAmey’s performance but were described as having limited impact.
GeoAmey was the sole bidder for its eight-year £238million deal awarded in 2018 after Serco and previous holder G4S pulled out.
Staff shortages have since led to delays in criminal trials and hearings with the Law Society of Scotland describing the problem as “disgraceful” in July 2023.
GeoAmey has also struggled to recruit or retain guards due to low wages.
The latest available figures show that between April and last September there were 14,236 late prisoner arrivals.
There were 1516 delays to court proceedings due to the late arrival of a prisoner or failure to bring that prisoner to a courtroom and 18,730 undue delays in the departure of a prisoner from court.
In October 2023, GEOAmey’s staffing levels had dropped to around 520 full-time equivalents, a decrease of between 20 and 25 per cent on required levels to deliver the service.
Asked about the accounts, GeoAmey said: “GEOAmey is dedicated to providing reliable and secure services to the UK’s Criminal Justice Systems, while endeavouring to ensure we offer good value for public money.
“Our annual accounts cover all the services we offer across the UK, not just those under the Scottish Court Custody and Prisoner Escort Service (SCCPES) contract in Scotland.
“As is widely understood, the post-COVID period and other external factors have significantly changed the operating environment of the SCCPES contract. This was confirmed by the Auditor General for Scotland in his December 2023 report.
In late 2023 we worked with the Scottish Government to recalibrate the contract, to reflect the revised operating environment.
“Since then, we have seen continuing improvements in service performance, increased investment in attracting and retaining employees and a significant increase in staffing levels. We know there is more to do, and we are committed to working with all stakeholders to ensure we play our role in delivering a high quality and reliable service to the Criminal Justice Partners in Scotland.
A Scottish Prison Service spokesperson said: “We continue to be focused on delivering a prisoner transport contract that meets the needs of those in our care, the Scottish justice system, and the country as a whole, both now and in the future.
“Following the recalibration of our contract with GEOAmey, with support from Scottish Government, we have seen improved staffing levels, with reduced attrition, and continuous improvement in performance, including for journeys to court and hospitals.
“However, we are not complacent and will continue to work with our partners and monitor its performance to ensure it meets the needs of all.”
Justice Secretary Angela Constance said: “The additional funding the Scottish Government provided to support the Scottish Prison Service and other partners in delivering an improvement in the GEOAmey contract was provided strictly on the condition it directly benefited staff through their pay.
“It has led to improved staff numbers and a significant reduction in the number of failed, cancelled or late journeys by GEOAmey to court and hospitals.
“SPS is continuing to monitor the performance of the contract carefully to ensure we see a level of service which meets the needs we expect.”
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