Security scandal may cost G4S £50m
G4S risks losing up to £50 million as a consequence of the security fiasco for the Olympic Games. The international security company finally made a statement to stop the mounting criticism over its failure to recruit enough guards for the London Games, expressing regret at the problems that resulted in the last-minute decision to add in 3,500 troops in order to avoid a shortfall in security guards.
The security company takes full responsibility for the additional costs incurred to meet a larger military deployment, the statement said, and added that G4S is also encountering other significant charges due to its incapability to meet contract challenges.
Lord Coe, the chairman of the Olympic organising committee was adamant about who will pick the bill for the increased number of soldiers/policemen deployed.
However, forecasts do not look promising, as Olympic officials privately estimate that 30% of workers will fail to turn up for work. This possibility might create an even worse shortfall that troops and Met Police would have to fill.
G4S describes itself as “the world’s leading provider of security solutions” and is a security company that has contracts with a variety of public authorities and government departments.
The security company admitted that it had difficulties processing all the applicants through the necessary training, vetting and accreditation processes in what they described as “an extremely complex workforce recruitment contract”.
Nick Buckles, CEO of G4S 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,” and added “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.”