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Go-Ahead retains º£½ÇÊÓÆµ's largest rail contract despite "appalling breach of trust"

The Government has decided that Go-Ahead's Govia joint venture will continue to operate the Thameslink, Southern and Great Northern rail services

Train tracks(Image: Lynne Cameron/PA Wire)

Go-Ahead Group has been re-awarded the contract to run the º£½ÇÊÓÆµ'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."