G4S has been awarded a £13 million contract from the Scottish Government – despite facing criticism over its handling of the Olympics.
The security firm will be responsible for tagging offenders in Scotland over five years, which Justice Secretary Kenny MacAskill claims will allow the use of the latest monitoring technology.
Labour said a full investigation into the firm's conduct during London 2012 should be carried out before it is given any more public money.
G4S was awarded a £237m contract for the Olympics, but it failed to supply the correct number of security staff for events.
Mr MacAskill's Labour shadow spokesman, Lewis Macdonald MSP, said: "Despite the international embarrassment of failing to deliver Olympic security and refusing to hand over the money paid to them by taxpayers, the Scottish Government has handed them even more of our hard-earned cash.
"It is shocking Strathclyde Police had to incur the costs of security at Hampden for Olympic football because of G4S failures and now, with a record of non-performance, the Scottish Government chooses to give them yet another opportunity to let down taxpayers."
But Mr MacAskill said: "The award of this contract allows us to utilise the very latest technology to keep our communities safe.
"Using satellite tracking rather than just radio frequency technology to ensure offenders comply with the strict terms of their release into the community is a significant step forward."
The contract award comes as G4S staff have raised fresh concerns that they won't get paid for Olympics and Paralympics security duties, after a committee of MPs said embattled G4S should forgo its £57m management fee.
Staff recruited by G4S have lodged complaints about losing hundreds of pounds each a month from their pay packets.
G4S has sent out claim forms to some of those who have complained. It insisted yesterday that "anybody who has worked for us will absolutely be paid in full".
The Home Affairs Committee said G4S should give up the £57m fee, which formed part of the contract, after it failed to deliver the 10,400 Olympic security guards needed in time.
Committee chairman Keith Vaz said the firm had delivered an "11th-hour fiasco" after "recklessly boasting" that it could meet the terms of its contract.
The committee also supported claims that staff accredited to work at the Olympics with the firm but not given any shifts, should be compensated.
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