Serco, the outsourcing firm at the centre of a Government contract scandal, has confirmed its chief executive has stepped down.
The company said Chris Hyman was leaving in a last-ditch bid to restore its reputation amid a wider restructuring - splitting the British central government work into a separate unit - to improve transparency.
It was told in September it could be investigated by the Serious Fraud Office (SFO) alongside rival G4S after an audit showed they charged for tagging criminals who were either dead, in prison or never tagged at all.
The study resulted in Serco's £285m prison escorting contract - which covers London and East Anglia - being placed under administrative supervision in August.
Serco then agreed to repay all past profits made on the prison escorting contract and forgo any future profits but insisted that no member of the board had knowledge of the alleged fraudulent practice.
Mr Hyman - who has run Serco since 2002 - said: "I have always put the interests of Serco first. At this time, nothing is more important to me than rebuilding the relationship with our UK government customer.
"In recent weeks it has become clear to me that the best way for the company to move forward is for me to step back.
"I have been fortunate enough to have had the privilege of working at a great company with extremely talented people. I wish everyone at Serco the very best for the future."
An inquiry, requested by both the Ministry of Justice and Serco's directors, is currently being carried out by City of London police.
It is investigating the actions of the staff working on the prison escorting contract.
Serco said Ed Casey, who has led its Americas Division, will become acting group chief executive and its board would be strengthened as part of its efforts to bolster scrutiny.
A Government spokesman said: "The Government will take full account of all the changes Serco have made today.
"Whilst it is early days in their programme of renewal, this is a positive move by Serco and a step forward."
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