UK Government to Activate Every Penalty Clause in G4S’s £57 Million Contract

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.

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