Serco in trouble

NBR reports:

Serco has mounted a legal challenge about a draft report by the Department of Corrections into the way the private prison operator has run Mt Eden prison.

Concerns about Serco’s performance, particularly in relation to the allegedly high incidence of violence at the Mt Eden institution, resulted in Corrections taking over running the prison in Julyand an inquiry being launched.

The basis for Serco seeking a judicial review of the report, which is still being considered by Corrections’ chief executive Ray Smith, is that the company claims it didn’t have sufficient opportunity to comment on and respond to it.

It must be damning if they are going to court.

If Serco are unable to meet the levels of performance they agreed to in their contract, then there are contractual remedies for that. That is the good thing about a contract for services.