The company Serco is being investigated by the Ministry of Justice due to allegations they altered documents and made it look as though they delivered prisoners to court on time... when in fact they did not.
Chris Grayling, the Justice Secretary, said: "There has been a culture within parts of Serco that has been totally unacceptable."
The company has already been warned that if the number of prisoners being delivered on time wasn't increased, its prison van contract would be terminated. This contract is worth £40.7 million a year over seven years.
The company's performance is measured partly on whether prisoners are early or late; whether the legal system has been delayed or not.
Chris Hyman, Serco Group chief executive, said: "We will not tolerate any wrong doing and that is why we have referred this matter to the police."
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