Forensic Accountants Probe G4S After Olympics

The future of Nick Buckles, Chief Executive of G4S, the company that failed to provide its contracted quota of staff for London 2012, hangs on the findings of forensic accountants appointed to probe the company’s accounts.

One of the aims of the accountants’ report, which is expected later this month, is to find out which G4S executives contributed to the failure. However, Mr Buckles told a Home Affairs Select Committee earlier this week: “I am the chief executive. If a contract goes wrong I take the pain for that. I will wait to see the outcome of the review.”

The Session with the Committee also featured Lord Sebastian Coe and Paul Deighton, Locog’s Chief Executive, Bernard Hogan-Howe the Metropolitan Police Commissioner and Chris llison, national Olympic security co-ordinator.

Mr Buckles added: “I have been with the group for twenty-eight years, I have been Chief Executive ten years. It’s been a big investment for my whole career.

“It is only after me talking to the board and the board talking to shareholders that that decision will be made.”

Payments to G4S were stopped within 48 hours of the firm admitting on July 11 that it would not be able to provide all 10,400 guards in time and on the worst day G4S provided less than two thirds of the required staff numbers.

The contract had been worth £284m when signed last December but was scaled back to £236m when it was found that only 4,000 guards had been trained and were ready by the start of the Games, Mr Deighton said.

G4S will attempt to negotiate with Locog over how much of the remaining £150m the company receives, although it already said that it expects to make a £50m loss on the contract.

As an accountant; Roger Isaacs specialises within business turnaround and business valuation.

Posted in Blog, The Forensic Blog.