Chairman John Connolly admits G4S could lose out after Olympic shambles

| July 23, 2012 | 0 Comments

By
City Finance Reporter

15:58 EST, 22 July 2012

|

15:58 EST, 22 July 2012

The chairman of embattled G4S has admitted the world’s largest security group could lose out on public sector contracts following the shambles over hiring Olympic guards.

John Connolly told a Sunday newspaper he fears the group could be frozen out  of future work to run prisons and handle back-office police work.

G4S and chief executive Nick Buckles have been at the centre of a political firestorm since admitting the group could not provide the promised 10,400 security guards to cover the London Olympic Games, which start this Friday.

G4S logo

Olympic misery: G4S and chief executive Nick Buckles have been at the centre of a political firestorm

‘If a contract was being given out by a
government department or other large business at the moment, you can
understand they would find it difficult to hand that contract to us,’
Connolly told the newspaper.

Connolly also said Buckles’ position could come under review, as he declined to give unqualified support to the under-fire boss.

‘It
is inevitable that a part of it [a review into the Olympics contract]
will be a discussion about the senior management. Was there enough of a
focus on this contract?’ Connolly said.

Buckles
was recently forced to appear before MPs to explain what went wrong. He
has been called back to give more evidence in September.

G4S
makes more than £1bn of its £7.5bn annual revenues from public sector
work and is currently bidding for nine British prison contracts as well
as services for the police.

The firm said overall losses on its contract would be between £35m and £50m.

The
shares closed at 241.7p on Friday, some 14 per cent lower than before
the group’s admission it did not have enough security officers to staff
the Games.

Filed Under: finance news

Leave a Reply

You must be logged in to post a comment.

Get Adobe Flash player