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The major blunder that sent detectives on the Gareth Williams inquiry down a blind alley for more than a year is the second embarrassment admitted this month by Britain's biggest private forensic science laboratory.

The latest error – described as "astonishing" and which led to a public apology from the company to the Williams family – has raised questions over systems and practices at LGC, which handles half a million samples a year.

Critics called for a public inquiry to try to discover if private providers were fit for purpose following the final closure today of the state-run Forensic Science Service. "This simply should not happen," said Professor Peter Gill, a founding father of DNA profiling in the 1980s. "Surely there is sufficient evidence to open a public inquiry because we are now getting regular reports of widespread system failure."

The mistake followed the discovery of a partial trace of a second person's DNA on the hand of Mr Williams. To rule out possible contamination from any of the investigators at the scene, those details were loaded manually onto a...