☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
19 July 2012 | Kamalpreet Badasha
Labour MP Margaret Hodge said the situation involving the supplier, which has failed to provide security guards contracted for the games, was foreseeable.
“The chaos that has emerged over the security contract was predictable and undermines confidence in those responsible for managing the Games,” she said in a statement. “Before Christmas, all those concerned gave assurances that the contract could be met, despite more than doubling the number of guards.”
A report published by the PAC today, Preparation for the London 2012 Olympic and Paralympic Games found that the management costs of the Olympics have shot up from £10 million to £125 million without credible explanation. It also found that the venue security costs rose to £553 million in December 2011 having previously been £282 million.
G4S had been contracted to provide security personnel but has failed to provide adequate numbers of staff, there has been a shortfall of 6200. The total number of military personnel providing security is now 17,000. The report calls on G4S to pay for the additional costs being met by the government and financial penalties for its failure to fulfil its contract.
She also said that a “post-mortem” of the security contract problems would be carried out in September.