Tuesday, September 11, 2012
G4S Olympic payments stopped in July - LOCOG
By Neil Maidment
LONDON (Reuters) - G4S, the company at the centre of a political storm over its failure to deliver enough Olympic security staff, has been paid 90 million pounds of its 284 million pounds contract, and the rest will be negotiated, Games organisers said on Tuesday.
G4S, the world's largest security group, said 16 days before the London Games began that it could not supply a promised 10,400 venue guards.
Payments to the company were stopped on July 13, two days after the shortfall was revealed. G4S had been paid 89-90 million pounds before that date, Paul Deighton, the head of the London Organising Committee of the Olympic and Paralympics Games told a Home Affairs Committee hearing in parliament, adding that the rest of the contract was up for negotiation.
The security firm eventually raised 7,800 at peak times, leaving the military to make up the shortfall.
G4S said previously it expected to make a loss on the contract of 50 million pounds because of the failure over staffing. Chief executive Nick Buckles is also appearing before the same committee and will be pressed for further explanation of the recruitment failure which has hit shares and raised questions about its prospects on future deals.
(Editing by Elaine Hardcastle)