Olympic organizers say agreement reached with G4S

The organizers of last summer’s London Olympics said Tuesday
that security firm G4S has agreed to take a hit of 85 million
pounds ($133 million) over its failure to meet the terms of its
contract.

Organizers had to scramble to provide military personnel and
other extra security after G4S admitted it could not provide all of
the 10,400 security guards it had promised for games venues.

The two sides have been in talks over a final settlement for the
240 million-pound security contract.

The games’ organizing committee, LOCOG, said G4S had agreed to
an adjustment of 85 million pounds in the terms of the
contract.

That includes 48 million pounds to cover ”all the additional
military, police and other step-in costs” incurred by organizers
because of G4S’s failure and a reduction in the project management
costs and operational costs paid to G4S.

Home Secretary Theresa May said in a statement that the
government fully backed the agreement. She said it met the
government’s objective that British taxpayers would not be
”adversely impacted” by the failure of G4S to meet its
obligations.

The statement also stressed that Olympic organizers did not have
to pay for any services that were not delivered.

G4S said its total loss from the games would be 70 million
pounds, more than its previous estimate of 50 million pounds.

G4S chief executive Nick Buckles said the agreement had been
reached without protracted legal proceedings.

”The U.K. government is an important customer for the group and
we felt that it was in all of our interests to bring this matter to
a close,” he said.