The Government is to take over train services on Southeastern's network on Sunday (October 17) after franchise holder Govia failed to declare more than £25 million of taxpayer funding.
Govia was a joint venture between Go-Ahead Group and Keolis. The former's chief financial officer Elodie Brian resigned after the decision to take over the franchise was announced.
The Department for Transport (DfT) will now be running trains under the Operator of Last Resort (OLR).
The network is one of the busiest in the country stretching across the south-east over London, Essex, Kent, Sussex and the High Speed 1 line.
There will be no immediate changes following the takeover, with trains, timetables and fares staying the same, and existing staff will remain in place.
Transport Secretary Grant Shapps previously said that an investigation by his department identified that Govia had not declared more than £25 million of historic taxpayer funding, which should have been returned.
He added that the Government would not accept "anything less" than "absolute transparency with taxpayer support".
Further investigations are now under way with the Government considering options for more action, including financial penalties.
Anthony Smith, chief executive of passenger watchdog Transport Focus, said: "Whoever runs Southeastern, passengers will want a reliable service which delivers on their key priorities: a punctual, reliable, clean train, with enough room to sit and stand, and value for money fares."
The OLR has taken over two other previously privately owned franchises in recent times. London North Eastern Railway launched in June 2018 and Northern Trains in March 2020.
Analysis by the PA revealed that following Sunday's move around a quarter of Britain's train journeys will now be managed by the public sector.
Cat Hobbs, director of public ownership campaign group We Own It, said: "Again and again, privatisation is failing our railway and franchises are being brought into public ownership one by one.
"Profit-driven companies won’t put passengers or the public first – especially as the railway is a natural monopoly where we don’t have a choice between companies.
"It’s time to bring the whole rail network into public hands where it belongs. Public ownership would save around £1 billion a year."
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