Firm responsible for Olympic security shamble gets ten-fold fee hike
London, July 13 (ANI): The company responsible for the Olympic security failure is being paid 53 million pounds extra for its work, after London 2012 organisers increased its "management fee" almost ten-fold.
According to The Telegraph, confidential Home Office documents have revealed that G4S has had its fee for managing civilian security staff for the Games hiked from 7.3 million pounds to 60 million pounds.
The fee the company takes for running its Olympic office has risen more than 10 times than its spending on recruitment, the documents revealed.
The firm's failure to provide enough staff for Olympic sites forced ministers to assign an extra 3,500 armed forces personnel for the security.
The new military deployment led to an intense scrutiny of the contract and prompted calls for G4S to be banned from future government work.
The Home Office initially estimated that 10,000 security staff would be needed for London 2012, but last year that estimate was increased to 23,500.
G4S was initially contracted by LOCOG, the Games organiser, in 2010 to provide 2,000 of the required personnel and be paid 86 million pound. Last year, its requirement was increased to 10,400 guards, with a requirement to train 3,300 students and 2,500 unpaid volunteers.
Almost 34 million pounds of the increase is for the G4S "programme management office" overseeing the security operation.
James Brokenshire, the security minister, said the firm would pay for its failings, saying that "there will be less paid in respect of guards that will clearly not be delivered".
Philip Hollobone, a Conservative MP, said: "I don't think it's enough to rely on penalty clauses in Locog's contract with G4S. My constituents would want the Government to say that G4S can have no more Government contracts whatsoever until they pay every last penny of the additional cost of these 3,500 troops." (ANI)
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