Private security giant G4S has pulled out of bidding for new contracts for tagging criminals following an overcharging scandal.
The FTSE 100 giant initially refused to withdraw from the bidding process despite revelations that the firm, with its rival Serco, had among other errors billed the Government for monitoring dead offenders.
Justice Secretary Chris Grayling said the company, which was previously mired in controversy over its botched handling of its Olympics security contract, would still face a review for all deals struck across Government.
Mr Grayling said: "I made it clear last month that I wanted G4S to withdraw from the competition for the new electronic monitoring contract.
"They refused to do so then.
"I am glad they have decided to withdraw now. We can now get on with awarding that contract, which will improve the monitoring of offenders and deliver savings for the taxpayer.
"G4S's withdrawal will not affect the ongoing review into contracts they hold with us.
"Our concerns regarding the billing for the electronic monitoring contract still need to be addressed.
"As I have said, I will not enter into any new contracts with G4S until that process has concluded satisfactorily."