Serco boss quits after overcharging scandal

Jeremy Stafford sacrificed as firm looks to rebuild its relationship with government

Serco boss Jeremy Stafford has quit following the electronic monitoring overcharging scandal that embroiled his company in a row with the government.

He is the second head to roll in the company's dispute with the government. The security firm's group chief executive Christopher Hyman also quit last month.

The other firm involved in the case, G4S, confirmed the departure of its CEO Richard Morris a month ago.

Both companies' reputations suffered when the government accused them of charging for electronically tagging offenders who were dead or in prison.

The Guardian also revealed that Serco falsified data when reporting its performance on an NHS contract in Cornwall. Serco had undercut a local GP co-operative to get the contract, but then left the county short of doctors.

In July, the Cabinet Office barred both companies from bidding for new state contracts while it reviews their operations.

Serco has been working to repair its relationship with central government over the past four months, since the billing issues were revealed.

In a statement, the company said that Serco and Jeremy Stafford, chief executive of UK and Europe, "had concluded that a change in the senior leadership of our UK and Europe division would accelerate and consolidate that process".

It appears that Stafford will get as much as £325,000 to quit the company based on his annual salary.

A Serious Fraud Office investigation into Serco and G4S's role in the overcharging row is ongoing.

However, Cabinet Office Minister Francis Maude announced that both companies will emerge "renewed and stronger" after a review of government contracts.

Chief operating officer Andrew White will take over as CEO of Serco until a new CEO can be found.