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Olympic security firm G4S not paid since July


Olympic security firm G4S has not been paid since it revealed it could not deliver the number of staff needed for the Games, organisers have said.

Locog chief executive Paul Deighton said it had paid G4S £90m up to 13 July, but nothing else since. He said the remaining part of the £235m contract was now “up for negotiation”. G4S admitted last month that the Olympic contract had cost it £50m after it failed to deliver the 10,400 Olympic security guards needed in time.

‘Not delivering’

The government was forced to turn to the military for the extra staff, for which G4S confirmed it would pay. The company’s chief executive Nick Buckles has apologised for the debacle. The company’s interim results showed half-year pre-tax profits had fallen from £151m to £61m. Mr Deighton revealed the payment when he appeared before the Commons Home Affairs Select Committee on Tuesday. Speaking about G4S, Mr Deighton said: “We stopped paying them just after they told us they weren’t delivering, so we didn’t pay them again after 13 July.” The Locog chief said all the money that had been paid so far was public money, and confirmed to the committee that the rest would be up for negotiation. Mr Deighton said G4S told Locog on 11 July that it would not be able to provide enough security staff for the Olympics. That was just over two weeks before the Games started.

‘Consistently assured’

He said G4S staff shortages during the Games were 4% at best and and 35% at worst. Lord Coe, London 2012 chairman, told the committee: “It is difficult to look beyond their inability to deliver on the contracted number of security personnel that we were consistently assured by them that they would be able to deliver.” G4S has said in a statement that it had had 8,000 staff on the ground over the course of the Olympics and it had delivered 83% of contracted shifts. It added that in many cases, the military were able to withdraw from specific sites. Earlier Mr Buckles told MPs that the staffing crisis had been a “humiliating shambles”.


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