The Ministry of Justice insists it will announce the winners of an estimated £290m contract to enforce and recover court fines following 'due diligence and evaluation' after MPs expressed concerns about giving a deal to a single provider following the collapse of construction giant Carillion.

Carillion plc, which provides facilities management services to half of the public prisons in England and Wales, declared insolvency last week. Labour MP David Hanson, a member of the Commons justice select committee, told the Independent yesterday that, in the light of the collapse of a major single provider, more due diligence should be done on the ministry's latest contract. 'We do not want a situation whereby one huge provider tenders for business, at a rate that offers a low profit margin and then finds themselves struggling to meet the obligations as has Carillion,' he told the newspaper.

The deadline for bids to deliver approved enforcement agency services on behalf of HM Courts & Tribunals Service was 28 September last year. The ministry would not comment on potential bidders but said the outcome will be announced this year following due diligence and evaluation.

A spokesperson for HMCTS said: 'The contract process is focused on ensuring we deliver an improvement in the service by making best use of industry expertise and modern technology. Any decisions will be fully taken in line with Cabinet Office procurement principles. We take the recovery and enforcement of court fines very seriously. Courts already have the power to issue warrants through enforcement agencies, and we have robust processes in place to ensure enforcement agents comply to the same standards as HMCTS staff.'

The ministry stresses that external organisations already handle the majority of warrants, and up to a quarter of enforcement work under existing arrangements. All approved enforcement agents wear body cameras to ensure codes of conduct are followed.