G4S Could Lose £50m Due to Olympic Games Security Blunder

By Community | July 14, 2012

Private security firm G4S is set to lose up to £50m ($78m) by not fulfilling their contract for the Lodon 2012 games.

Chief executive Nick Buckles (pictured) apologised after an extra 3,500 armed forces personnel had to be drafted in to bolster security for the Games.

Home Secretary Theresa May was forced to ask the Ministry of Defence to provide more troops after the contractor admitted it did not have enough staff.

The company has a £284m ($442m) contract with the Government to provide 13,700 security guards for the Olympic Games, but only 4,000 guards are trained and ready.

In a statement G4S said: “G4S accepts its responsibility for the additional cost of the increased military deployment resulting from the shortfall in workforce delivery. The company is also incurring other significant costs as it endeavours to meet the contract challenges.  

“Whilst it is not possible to gauge the precise financial impact, it is estimated that the Company will incur a loss on the contract in the range of £35m – £50m, all of which will fall in the current financial year.”

Nick Buckles, CEO said: “We are deeply disappointed that we have not been able to fully deliver against our contract with LOCOG and that it has been necessary to call upon the additional military personnel.  In partnership with the military and LOCOG, we are working flat out around the clock to resolve the situation.  

“We are determined that together we will deliver a successful and secure Games.  I would like to thank the members of the current security workforce who are already on the ground securing many of the Olympic sites across the country.”

John Connolly, who joined G4S as Chairman on 8 June 2012, added: “Since I joined the Company I have seen the huge focus which has been placed on delivering this contract.  It is a significant disappointment to everyone at the Company that we have fallen short of our obligations.

“I know however that everyone involved throughout G4S is doing everything they can to improve the situation and we are putting every resource behind this effort.”

Mr Buckles has been called to give evidence to the Home Affairs Select Committee on Tuesday as part of the panel’s inquiry into Olympic Security.