Government to activate every penalty clause in G4S’s £57 million contract after chaotic Olympic security arrangements

Sports minister Hugh Robertson says G4S’s £57 million ‘management fee’ would be targeted

The Government will activate “all penalty clauses” in G4S's contract to cut the bill for the taxpayer in light of chaotic security arrangements, the sports minister said today.

G4S’s £57 million Olympic security ‘management fee’ appears to be at risk today, after the sports minister said the government would activate “all penalty clauses” in light of the firm’s chaotic handling of the project.

Hugh Robertson said G4S’s payment would be actively targeted by the penalties but said he was still “working through” exactly how much is likely to be deducted from the total fee.

Mr Robertson stopped short of calling for the head of G4S boss Nick Buckles, saying the Olympics needed “stability” before adding that Mr Buckles’ future “is a matter for others in a post-Games environment.”

Asked whether Mr Buckles should resign, Mr Robertson told the press conference in Westminster: “The important thing is that we deliver a safe and secure Games, and G4S remain a key partner in that, so I want stability at that firm, and delivery.”

”I don't want resignations causing chaos. What happens to Mr Buckles afterwards is a matter for others in the post-Games environment.

“What is crucial now is that he and his organisation concentrate absolutely on delivering a safe and secure Olympics.

”I have confidence in their ability to do so.“

Mr Robertson’s comments come amid reports that the Ministry of Defence may be asked to provide yet more troops to plug the gaps in security if G4S fails to deliver the required number of guards.

The MoD said that contingency plans are in place to provide more troops if needed, but added that no request has yet been received. There were, however, reports that a decision will be taken tomorrow on whether to put 2,000 personnel ”on notice to move“, which would mean that they would act as a reserve force throughout the Olympics period and would not be available for other tasks.

Sky News quoted an unnamed Home Office source as saying: ”The decision to put another 2,000 military personnel on notice to move will be taken tomorrow.

“This comes after very intrusive examination of G4S management and while we are confident that the recruitment targets will be met, it is prudent to make contingency plans of this kind.

”If this decision is taken, it will mean that the personnel will be told to be ready to move, but will not be moved.“

A Home Office spokesman said: ”We have not asked the military to deploy any more military personnel beyond the 3,500 already agreed.

“We are constantly reviewing the extent of the G4S shortfall and if it becomes necessary to increase the size of the military contingent, then this is something we will consider.

”There are currently 11,000 military personnel assigned to venue security, alongside G4S staff and accredited volunteers.

“The Government has committed £553 million for venue security and we remain confident that we will deliver a safe and secure Olympics within that budget.”

An MoD spokesman said: “As the Defence Secretary made clear at the weekend, should there be a requirement for additional military personnel the MoD will do whatever possible to make them available.

”At the present time no further requests have been received but, as people would expect, an ongoing programme of prudent planning continues.“

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