Financial disturbance action against G4S - fake S&P downgrade

Nieuws, gepost door: tear down all prisons op 08/06/2012 06:04:55

Wanneer: 08/06/2012 - 15:10

A fake press release from Standard and Poor's announcing a downgrade for the G4S group was diffused two days ago. Even though it was a fake, the information has spread in the financial market. The reason is the G4S's involvement in the detention and deportation business.

Wednesday at 3.30 PM, a fake press release from Standard and Poor's
Europe was sent out. It stated G4S has been downgraded for having lost all public
contract in justice sector in UK. The fake information start spreading in the financial market, to the extent that Standard and Poor's had to issue a statement for stopping the rumor

The press release reached more than a thousand financial journalists
and financial actors, all subscribed to the Standard and Poor's alert list. The mail followed a correct template and was sent from the correct e-mail address used by Standard and Poor Europe. One hour and half later, a fake claim from the G4S chief executive was sent to the same press list. The fake claim stated the G4S' chief executive has voluntary spread the previous false information as feeling guilty for managing detention centers in UK.
(ok nobody believed probably to this second fake but at least it was funny).

Some disruption on the financial market for a detention and deportation profiteer.
Down with all borders and all prisons!

Below the text of the fake press release from S&P
and the text of the fake claim from G4S' chief executive.

Here is the link to the web version of the fake press release:

Fake press release

If your email program has trouble displaying this email, view it as a web page
Standard & Poor's Ratings Services | Press Release
"Standard & Poor's Ratings Services | Press Release"

G4S Corporate Credit Downgraded To 'BB/B' On Loss of High Profile Public Contracts

Relevant earnings reduction is expected at G4S in the UK. Government contracts
in the care and justice services sector in United Kingdom will not be renewed
due to a criminal investigation related to the ambiguous death of a detainee in
a company's facility. This will sensibly affect future earnings.

Government contracts represent around 27% of G4S plc's revenue in 2011. Justice
represents a relevant and expanding sector. The loss of all justice sector
contracts in the UK and the related scandal are likely to undermine the group's
reputation and growth potential.

We are lowering our long-term rating on the company to 'BB' from 'BBB' and the
short-term rating to 'B' from 'A-2'.

LONDON (Standard & Poor's) June 6, 2012--Standard & Poor's Ratings Services today
lowered its long-term corporate credit rating on G4S plc to 'BB' from 'BBB'. We
lowered the short-term corporate credit rating on the company to 'B' from 'A-2'.

The downgrade reflects our expectations that the loss of important public contracts
with the UK government will sensibly affect the operating performance of G4S in
the United Kingdom and will have a negative impact on the company's financial soundness.
The UK government announced there will not be prolongation of any contracts with
G4S in the care and justice services sector. The reason attributed is the scandal
in the Brook House Immigration Removal Center, managed by G4S, where staff of the
center currently forms the object of police investigations on the death of a Sudanese
detainee. The total amount of these contract is £140 million per year, the turnover
for G4S will be reduced by around 2% according to our estimates.

The negative outlook also reflects our view that the loss of these high profile
contracts and the possible outcomes of the related scandal will affect the reputation
and negatively impact the expansion potential of the company. Government contracts
represented around 27% of G4S plc's revenue in 2011, with a significant portion of
these contracts going to justice, care and border protection services. This sector is
a large and quickly expanding market for private companies. We estimate that recent
events are likely to undermine G4S's growth potential.

Fake claim

Earlier today you may have received a press release announcing a downgrade of our company due to the loss of all our public contracts in the care and justice sector in the United Kingdom. I wish to claim responsibility for
the false information that I have spread. I also wish to express my most sincere apologies to all the colleagues and friends I have betrayed with this act. However I do not regret to have listened to my consciousness for
the first time of my life.

I feel guilty to represent a company that is speculating on the murderous deportation and detention machine which
is making profits on the oppression of tens of thousands of asylum seekers.
In the UK=92s detention centers there have been 16 suicides alarming rates of self harm hunger strikes and appalling levels of mental and physical illness. Thousands of men women and children have been put through detention and thousand of refugees are deported by force every year.

In 2011 our company managed five detention centers for asylum seekers in
the United Kingdom. In these detention centers just during 2010 773
complaints have been lodged against G4S by detainees including 48 claims
of assault. Our company already lost the contract to supply escorts in forcible deportations after the death of an Angolan deportee.

Even though the tragic news of the death of a Sudanese refugee is false
it is true that the murderous border system threatens the lives of thousand
s of people every day. For this reason I decided to denounce our company's
involvement in this inhumane machine. But I wish to reassure our shareholde
rs that G4S's decisions will always be driven by a commitment to maximise profit regardless of any moral consideration. Our company will therefore
uphold its contracts in the care and justice sector.

Nick Buckles
Group chief executive
G4S plc

Tags: migration detention action

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