G4S ‘management fee’ for Olympics up eightfold, says Telegraph

The day after security firm G4S found itself under public, media and parliamentary scrutiny over its apparent inability to fulfil its contract to deliver London Olympic security, The Daily Telegraph reports that its “management fee” for the job has risen from £7.3m to £60m.
Fri, 13 Jul 2012
The day after security firm G4S found itself under public, media and parliamentary scrutiny over its apparent inability to fulfil its contract to deliver London Olympic security, The Daily Telegraph reports that its “management fee” for the job has risen from £7.3m to £60m.

The paper refers to “confidential Home Office documents” as a source, also noting that this fee has risen “more than 10 times faster than its spending on recruitment”.Yesterday (12 July) came the news that 3,500 extra military personnel would be placed on standby to cover gaps left by G4S’s inability to provide the 21,000 staff needed for the Games.

As recruiter.co.uk had reported in November, the company had originally been told they would need to supply 10,000 staff for the Games, but this was later revised to 21,000. At that time a spokesperson for the company told Recruiter: “We were always aware that this [10,000 figure] might change and if it does we will meet the change.”

The Telegraph also notes that the government’s Olympic budget will reimburse the Ministry of Defence for use of the extra military personnel, but adds: “MPs said G4S should be made to pay.”

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