THE British government says security firm Serco has agreed to repay STG68.5 million ($A127.56 million) after it was accused of overcharging on contracts to monitor offenders using electronic tags.
The Ministry of Justice says Serco will reimburse money owed on the contract and pay costs incurred by the investigation.
In July, Britain's attorney general said two firms, Serco and G4S, had charged the government millions for people they were not actually monitoring.
In a few cases, offenders they were supposedly monitoring were dead.
The revelations prompted the government to review all contracts held by Serco and G4S.
The justice ministry said on Thursday that G4S was facing further investigation by the Serious Fraud Office over problems with contracts for facilities management in courts.
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