The G4S Debacle - The Next Steps

Unsurprisingly G4S, the security firm that failed the nation when the eyes of the world were watching, continues to remain in the headlines. The media and other interested parties are analysing its business and operations with a fine tooth comb, something maybe the government and Locog should have done before signing the Olympics contract?

The Telegraph reports that confidential Home Office documents show that G4S has had its fee for managing civilian security staff for the Games rise from £7.3M to £60M.

The fee the company takes for running its Olympic office has risen more than 10 times faster than its spending on recruitment.

"Almost £34 million of the increase is for the G4S “programme management office” overseeing the security operation. By contrast, the firm’s recruitment spending has increased by only £2.8 million.

The company told ITV Tonight that the contract was subject to “extensive negotiation to ensure value for money” and that there were caps on any profit made. G4S said it had been “absolutely transparent” with Locog about its finances."

Whilst G4S may or may not be "absolutely transparent with Locog", as I noted yesterday, Locog and the government are not absolutely transparent with the taxpayer about this and other aspects of the Olympics.

As an experienced FCA and fraud investigator I recommend that if G4s, the government and Locog want to put taxpayers' minds at rest over the integrity of the contracts awarded for the Games, then a full independent audit be conducted of the tendering process, the contract and G4S operations pertaining to their work for the Games.

Only then will the fears and worries of the taxpayers be assuaged.

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