G4S partners appear to be struggling to fulfil a £122 million contract to provide housing for asylum seekers, according to a leaked letter from immigration executive Stephen Small.

The contract to deliver housing for 9,000 asylum seekers was secured by the security giant in March 2012.

The letter seen by the Daily Telegraph detailed fears by G4S’ partners regarding the viability of the contract with one of the partners having already pulled out of the contract.

The letter by Stephen Small said: “It has become evident over the last few months that a number of our accommodation partners are finding it increasingly difficult to manage aspects of this contract.”

The letter comes after the Home Office expressed fears last September surrounding the ability of the security firm to deliver the contract.

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