14 Aug 2014

Prison manager Serco makes $14m loss

4:05 pm on 14 August 2014

Serco, the British-based multinational company which runs Auckland's Mt Eden Prison, is vowing to turn around its fortunes after losing millions of dollars.

The old Mt Eden prison.

The old Mt Eden prison. Photo: RNZ

Serco's pre-tax loss for the six months to the end of June has doubled to $14 million.

That is largely due to re-organising costs, loss-making contracts and being hit by a six-month ban on British government contracts following a scandal over criminal tagging in 2013.

Serco is building a new prison in Wiri, Auckland, under a public-private partnership deal with the Government, which is worth $840 million over 25 years.