Summary
Suppliers say they are owed about £20 million for work on prison upgrades in England. The lead contractor, ISG, went into administration, leaving many companies unpaid. The Ministry of Justice had promised to protect these payments using special accounts, but many firms are still waiting for their money.
Key Facts
- Suppliers worked on upgrades at three prisons: HMP Birmingham, HMP Liverpool, and HMP Guys Marsh.
- About 40 companies are reportedly owed money after the main contractor, ISG, went bankrupt in September.
- The Ministry of Justice had used Project Bank Accounts (PBAs) to protect payments, but some firms say these accounts did not work.
- European Screeding, a Lancashire-based company, is owed £130,000 for work on prison cell floors.
- Raven Project Metals, based in Leicester, is owed nearly £185,000 for work on HMP Birmingham.
- PBAs are intended to ensure suppliers are paid even if a main contractor fails.
- The failure to protect payments has worried many businesses, with some considering legal action.
- The Ministry of Justice has not commented on the situation.
