G4S execs resign and new roles created to address failings

28 September 2012

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28 September 2012 | Anna Reynolds

Two executives at G4S have stepped down following the fiasco over the security contract for the London 2012 Olympic and Paralympic Games and new positions have been set up.

A company review, led by a senior G4S executive who is independent of the UK region with the assistance of PwC, was published today. It said those in the new jobs would support the CEO, improve project management, provide a more rigorous risk assessment for fresh contracts and oversee government deals.

The board will also play a more active role, reviewing and approving all deals where annual revenues exceed £50 million, it said.

Richard Morris has been appointed as the CEO, UK region. He is currently the group managing director of G4S Care & Justice Services in the UK. Kim Challis, who oversees a number of UK commercial and government businesses, will take on direct responsibility for all UK government business as CEO of G4S Government and Outsourcing Solutions. This is a new role to “enhance G4S’s focus on this critically important area of our business”. Nick Buckles will remain as group CEO and a group chief operating officer will be recruited externally to work with him. That individual will be responsible for operational procedures, risk management and quality customer service and delivery. Two non-executive directors will also be appointed.

G4S apologised for its monitoring of the security workforce, the project management framework and management information, all of which were “ineffective to address the scale and complexity of the Olympic contract”. It also thanked the police and military for their help in delivering a safe and secure games.

John Connolly, chairman of G4S, added: “Our review has been extremely thorough and while the failings are largely specific to the very special nature of this contract, we will learn from mistakes made. We are taking actions in relation to both the management and governance of G4S to ensure we continue to deliver the highest standards of customer service and contract delivery across the group.”

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