Following months of negotiations with the Games’ organisers, the international security outsourcing group has agreed on terms that will see the firm incur losses of approximately £70 million on the Olympic contract.
This figure is higher than the previous £50 million estimate and includes an additional £18 million relating to charitable donations, external fees and additional costs of sponsorship and marketing.
Nick Buckles, CEO of G4S, said he was “pleased” that negotiations with LOCOG were now concluded and talks ensured the overall cost to the British taxpayers has been “reduced significantly” against previously planned budgets.
“The UK Government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close in an equitable and professional manner without the need for lengthy legal proceedings,” he added.
G4S came under criticism in the build-up to the Games when it failed to recruit and train previously-agreed numbers of security personnel for the Olympics and Paralympics, with the military and police stepping in to make-up the shortfall.
LOCOG confirmed that G4S has agreed to pay all the additional costs it incurred to pay all the stand-in guards, which totals to around £48 million, and settled on a £37 million reduction in their project management and operational costs.
Neil Wood, LOCOG’s Chief Financial Officer, said: “The savings arising from this settlement brings the total savings to the public purse from the LOCOG venue security budget to £102m compared to the position in December 2011.”