May 26 2013 Latest news:
Tuesday, February 12, 2013
Security firm G4S, which failed to provide sufficient guards during the Olympics, took a £70million hit on its London 2012 contract.
The loss, which is more than its previous estimate of £50 million, comes after months of negotiations with Games organisers Locog.
G4S also incurred additional costs of around £18million relating to charitable donations, fees and the cost of sponsorship and marketing.
Chief executive Nick Buckles said: “The UK Government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close in an equitable and professional manner without the need for lengthy legal proceedings.”
The two sides have been in talks over a final settlement for the £240 million security contract, after G4S failed to provide all of its 10,400 contracted guards. The shortfall left the Government with no choice but to step in with military personnel.
Chief operating officer David Taylor-Smith and Ian Horseman Sewell, who was head of global events, resigned after the fiasco, but Mr Buckles stayed in his post.
Locog said the taxpayer’s interests have been fully protected in compensating for the difficulties experienced by G4S’s shortcomings.
Chief financial officer Neil Wood said: “We are pleased to have reached an agreement that protects taxpayer’s interests by reducing the payment due to G4S by £85m.
The savings arising from this settlement brings the total savings to the public purse from the LOCOG venue security budget to £102m compared to the position in December 2011.
“We would like to thank the military and the police for their exceptional and outstanding support during the Games in providing a robust, effective, professional and friendly security operation.”
Norfolk turkey giant Bernard Matthews is in talks to sell a stake in the business.