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Thursday, July 19, 2012

Locog's Chickens Come Home To Roost

It has emerged that Locog, the organisers of London 2012, encouraged G4S to keep wages for security staff as low as possible.

Security guards have been offered £8.50 an hour to work at the Olympic venues, which is below the market rate of about £10 an hour.

This pressure on G4S by Locog is somewhat "ironic" given that the government and Locog said publicly that security staff should be paid £10 an hour, so that enough staff were recruited in time.

Locog's chickens have come well and truly home to roost!

The BBC reports that G4S was "incentivised" (ie pressured) in the contract (which was renegotiated and enhanced in December) to keep costs down in order to maximise profits.

Unsurprisingly Margaret Hodge, the chairman of the Public Accounts Committee, has said that it raises "serious questions" about Locog's management of the contract.


I will therefore repeat what I have said before:

1 This is what happens when a major project/event is not run in an open transparent manner, and is not subject to scrutiny by independent professionals acting in the interests of the taxpayer.

2 As an experienced FCA and fraud investigator I recommend that a full independent audit be conducted of the tendering process, the contract, Locog and G4S operations pertaining to their work for the Games.

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