Cameron vows to pursue G4S for costs of security shortfall
David Cameron signalled yesterday that the Government would attempt to claw back a £57m management fee that G4S is charging despite the security firm's failure to provide thousands of guards for the Olympic Games.
Pressure grew on the company after its chief executive, Nick Buckles, astonished MPs by insisting it still intended to claim the money.
Speaking on a visit to Afghanistan, the Prime Minister said: "Let's be clear – if G4S don't fulfil their contract we will go after them for the money to make sure they help pay for the military personnel that have been brought in."
G4S argues it is still entitled to the cash because of the work it has done over the last two years on its £284m Olympics contract. Some 3,500 soldiers have been deployed to help cover the G4S security shortfall, with a decision expected as early as today on whether to draft in another 2,000.
Hugh Robertson, the Olympics minister, said lawyers were examining the G4S contract's penalty clauses. He said they applied to the "whole contract, including the management fee".
Labour has accused the Government of being too "hands off" about the contract and has challenged it to step in and enforce "proper penalties".
G4S won a £200m deal to run Lincolnshire Police's control room in February and, until the Olympics fiasco, had been preparing to bid for similar contracts across the country.
The security giant is also competing for four of the six contracts being offered by the Ministry of Justice to manage jails. The department has put off a decision on the successful bids.
How Atletico Madrid produced a miracle on a shoestring
Chelsea 1 Sunderland 2: Blues could face FA punishment after Jose Mourinho’s post-match dig at referee
WWE Smackdown Results: Batista sends signals to The Shield ahead of their 6-Man Tag at Extreme Rules
Hull v Arsenal: Arsene Wenger admits 'I am not in the best position' as contract uncertainty continues
Chelsea 1 Sunderland 2 match report: Fabio Borini makes Chelsea pay penalty for lack of fight
- 1 Easter egg hunt horror as mother finds dead body under deck of house
- 2 'Natural' energy drink banned for containing erectile dysfunction drug
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Loch Ness Monster found on Apple Maps?
- 5 How We Met: Alison Moyet & Emma Kennedy: 'I knew we'd be friends because she was happy to make a prat of herself'
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave