Locog: Taxpayer's interests 'fully protected' in G4S settlement
Taxpayer's interests have been fully protected in compensating for the difficulties experienced by G4S' security shortcomings during the Olympics, according to Locog.
Its chief financial officer Neil Wood said the overall agreement reduced the payment due to G4S by £85 million, comprising £48 million to cover step-in costs by police and military and £37 million primarily for project management failures.
The savings arising from this settlement brings the total savings to the public purse from the Locog venue security budget to £102 million compared to the position in December 2011.
Olympics contract loss costs security firm G4S millions
G4S' £70 million loss over its London 2012 Olympic and Paralympic contracts follows months of negotiations with Games organisers Locog.
The security group also incurred additional costs of around £18 million relating to charitable donations, fees and the cost of sponsorship and marketing.
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.