G4S hit with ?85million bill over London 2012 Olympics security fiasco

G4S failed to provide enough guards at the Olympics (Picture: PA)

Bungling security group G4S has taken an ?85million hit for failing to provide enough guards at the London Olympics.

The contractor was forced to accept a larger-than-expected loss from London 2012 after months of negotiations with Games organisers.

G4S was told it would be paid only ?171million of the ?256million it wanted after members of the Armed Forces had to be called in to make up the shortfall of thousands of guards.

The company said it would now be ?70million worse off overall from London 2012, rather than its previous estimate of ?50million losses.

G4S will miss out on ?48million to cover military and police costs and ?37million as punishment for project management failures.

Criticised: G4S CEO Nick Buckles (Picture: Rod Kirkpatrick / F Stop Press)

Chief executive Nick Buckles has kept his job, despite chief operating officer David Taylor-Smith and global events head Ian Horseman Sewell earlier losing theirs.

Mr Buckles, who was criticised by the Commons home affairs select committee, said: ?The UK government is an important customer and we felt it was in all of our interests to bring this matter to a close.?

About one-tenth of the group?s work is with British government departments or organisations.

G4S received revenue of ?7.5billion in 2011 and has contracts with bodies, including six prisons, airports, banks, courts and councils across Britain.

Olympic organiser Locog?s chief financial officer Neil Wood said: ?We are pleased to have reached an agreement that protects taxpayers? interests.?

Source: http://metro.co.uk/2013/02/12/g4s-hit-with-85m-bill-for-london-2012-olympics-security-fiasco-3454716/

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