Serco boss quits following scandal over government contracts

Serco Group has today announced its chief executive Christopher Hyman has resigned, in a bid to restore the company's reputation, following an overcharging scandal.

Back in July, the government services firm was shaken by allegations of fraud, after justice secretary Chris Grayling accused it of overcharging on contracts to tag criminals.

The company reports that Hyman "believes the company will have the greatest chance of success" with an alternative leader. He says "I have always put the interests of Serco first. At this time, nothing is more important to me than rebuilding the relationship with our UK government customer."

Ed Casey, who has led Serco's Americas division since 2005, has been appointed acting group CEO and to the Serco board with immediate effect.

The firm has also released an update on its renewal programme, which will see UK and European operations separated, the appointment of a Corporate Responsibility board and full-time ethics officers, along with an updating of its Code of Conduct. (Release)