Go-Ahead Group has been re-awarded the contract to run the UK's largest rail network, despite being fined £23.5m for what the Government called an "appalling breach of trust" only last week.
The Newcastle-based group's Govia Thameslink Railway (GTR) joint venture - of which it is the majority owner - has again been handed the contract to run the Thameslink, Southern and Great Northern rail services by the Department for Transport (DfT).
GTR has run the services since 2014, managing 235 stations and employing 7,400 people. The new contract will earn the firm a fixed management fee of £8.8m a year, with additional performance fees of up to £22.9m.
Read more: Go-Ahead Group franchise loss to cost company up to £81.3m
The new contract starts on April 1 and will run until at least April 1, 2025, with up to a further three years at the Secretary of State's discretion.
The move comes after Go-Ahead was fined £23.5m and ordered to pay back £64m owed to the taxpayer after it concealed funding relating to the London & South Eastern Railway (LSER) contract run as part of its Govia joint venture.
The DfT also said it had carried out an investigation identifying fraudulent behaviour possibly stretching back as far as 2006.
Only last week, Transport Secretary Grant Shapps said "I took decisive action and did not renew the contract with Southeastern following this appalling breach of trust", adding that "the Government, and taxpayers, will not stand for it."
Rail union RMT has previously called for Go-Ahead to be banned and that it was "beyond belief" the Government would considering awarding the Thameslink, Southern and Great Northern franchise to Go-Ahead.
Now, RMT general secretary Mick Lynch said: “What does a company have to do to not get a contract on Grant Shapps’ Great British Railways? The Transport Secretary has stripped Go-Ahead Group of a contract, made them repay money they owe, fined them and then granted them another one.
“Mr Shapps has done this having been reassured that Go-Ahead are safe with public money on the strength of a report conducted by the same people who ripped off the public in the first place and who then marked their own work in the knowledge that they stand to make around £80m in guaranteed profits from this contract.
“The whole process has been compromised from the start and cloaked in secrecy and it makes it abundantly clear that Great British Railways is nothing more than a tawdry vehicle for private looting. This was a totally unnecessary decision, driven by an ideological fixation with greed and profit because the Operator of Last Resort, which picked up the wreckage of Govia’ Southeastern franchise, was ready and waiting to take over and run it in the public sector.”
Wendy Morton, Minister for Rail, said: "As the UK's largest rail operator, I know GTR will play a key role helping the Government continue delivering our Plan for Rail and revolutionise the lives of passengers.
"With their plans for improving the punctuality, reliability and accessibility of their services through close collaboration with Network Rail, we are proud to partner with GTR to create a truly passenger focused service."
Christian Schreyer, Go-Ahead CEO, said: "I'm delighted with today's announcement. Under this new contract we will build on our achievements in enhancing performance in recent years. We will be working closely and collaboratively with DfT, NR and other partners to run the most reliable service possible, and we will be putting passengers' interests first.
"A top priority is to build passenger numbers back after the Covid-19 pandemic. Go-Ahead will bring commercial acumen and international experience to bear in encouraging people back to the railways."
Patrick Verwer, GTR CEO, said: "We welcome this positive news, which marks the start of a new era for GTR. I'm incredibly proud of how far we have come, including overcoming two challenging years dominated by Covid. All of this is thanks to the continued focus and passion that GTR colleagues bring to work every day.
"I'm delighted that GTR's long-standing experience in running the UK's largest train network, our focus on improving the customer experience and our strong local community relationships have been recognised. This new agreement means we can continue to build on what we have achieved to date as we focus on welcoming more people back to the railway."
