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Firm loses contract to help Hampshire jobseekers
11:00am Wednesday 16th May 2012 in Business
A COMPANY has been stripped of a contract helping Hampshire’s jobless people to prepare for work.
Ministers announced that there had been “significant weaknesses” in the contract held by A4E following fraud allegations.
An investigation found no evidence of fraud, Employment Minister Chris Grayling told MPs.
However, the contract was ended because of “inadequate procedures”.
The investigation related to part of the Government’s drive to pay private companies if they bring people back into work.
The contract in question related to the Mandatory Work Activity programme, under which jobseeker’s allowance claimants have to take part in work placements, doing things like maintenance or charity work, to get them into the employment routine.
It covered parts of the southeast, including Hampshire and the Isle of Wight.
A4E is currently subject to a police fraud investigation, and a number of people are on bail.
It will keep other contracts it holds with the Department for Work and Pensions, Mr Grayling said.