Transport operator Go-Ahead has apologised for “serious failings” in its Southeastern Railway franchise, as it delayed its results and prepared to suspend trading in its shares after failing to declare money owed to the government for years.
Ministers stripped the British rail and bus operator of the franchise in late September after finding Go-Ahead had not declared more than £25m in taxpayer funding that should have been returned since 2014.
Go-Ahead on Thursday said an independent review had confirmed its rail business had failed to notify the Department for Transport of the payments owed, and had therefore breached its contractual obligations under the UK’s rail franchising system.
“The review has found that serious errors were made by London and South Eastern Railways with respect to its engagement with the DfT over several years . . . accordingly, the Group has apologised,” Go-Ahead said.
The undeclared funding, which has now been repaid, was originally discovered by a government official. They concern unreturned government financial support to cover track access fees for High Speed 1, the rail link which connects London with the Channel Tunnel through the south east of England, according to two people familiar with the matter.
Go-Ahead operated the South Eastern franchise through Govia, a joint-venture with France’s Keolis.
Given the chaos in its rail business, Go-Ahead on Thursday said it did not know when it would be able to publish its annual results, which were originally due on September 30.
Deloitte, the company’s auditor, has said it will not be able to complete the audit before January 3, the latest date permitted for the results to be published by UK regulators.
Go-Ahead has therefore applied to have its shares suspended on January 4 until the results are complete, which is now expected before the end of January.
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