If any of us 'normal' people defruaded the government, we'd be in prison.
If one of the government's friendly outsourcing companies do it, they simply have to promise not to 'make a profit'. Not very harhs - I'm sure that covering costs and wages for your staff until the next contract isn't such a bad deal.
Just as public sector workers can all be TUPE'd out en-masse in privatisations, simply 'nationalise' the relevant staff and facilities in Serco and send the appropriate management to prison.
If we are going to privatise everything in this country, as this governmnet seems hell-bent on doing, companies must have some sort of incentive not to actually rip us all off, and the State has to have a way of continuing to provide the service should fraud like this be discovered.