Security firm loses $110 million over Olympics fiasco

LONDON: British security giant G4S is to lose #70 million ($110 million, 82 million euros) over its failure to provide enough guards for the London Olympics, the company said on Tuesday.

The firm had previously estimated that it would lose #50 million over the fiasco, which forced the British government to draft in 4,700 troops at the last minute to help guard the Games.

The company, which has spent months negotiating a compensation deal with the Games organisers, said it also incurred extra costs of about #18 million relating to charitable donations, fees, sponsorship and marketing.

Chief executive Nick Buckles said: “The UK 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 in an equitable and professional manner without the need for lengthy legal proceedings.”

G4S faced an inquiry by British lawmakers after it announced just days before the Olympics that it could not completely fulfil its #284-million contract to provide 10,400 security staff for venues.

Buckles faced pressure to resign over the fiasco, which claimed the job of two other top G4S executives.