G4S ‘Donates’ £2.5M To The Armed Forces

After the staffing fiasco that saw security firm G4S admit that it would have a shortfall of 4,500 staff from the 10,400 that it was originally contracted to provide, the company is now, after the Olympics, making a £2.5M ‘donation’ to the MOD to be used for sports facilities for service personnel.

This is in recognition for the contribution the armed forces have made in baling out G4S.

What has happened though, is that G4S retains all the £284M that it was paid to supply 10,400 staff, even though it has only supplied in the region of 5,900.

The final figures will come out in time, but G4S were originally being paid £27,307 for each person for the two (maybe three with the run-up) week period. That was if they DID supply the full quota. As it stands, they’ve been paid £48,135 for each individual.

For the 4,500 MOD staff, they are paying £555 each. Which I am sure does not even cover MOD costs, barely the subsistence for those individuals for the two weeks in question. As it is, the money is earmarked for facilities, not the costs incurred.

I sincerely hope that this matter does not get swept under the carpet, and that Nick Buckles, CEO of G4S will ensure that proper accounts are made public so we can see that this is not just some Government scam paying corporations huge amounts of money for little value.

I would want to see a substantial amount paid by G4S to the MOD. Certainly £40M is more in line with the real value. We will see.

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2 Responses to G4S ‘Donates’ £2.5M To The Armed Forces

  1. frankymole says:

    Presumably this must be in addition to the full operating cost recovery of the supply of armed service personnel and diverted MOD staff time, which will be recovered on repayment terms (since the taxpayer/HMT is not in the business of subsidising private security firms)? None of the press articles I have read have mentioned the full recovery/repayment – perhaps I should research this for them by writing to my MP.

  2. frankymole says:

    On the Army website ARRSE, one poster relates: “My flatmate, who works for G4S, told me that at the site he works on, they had upto 10 men daily just paid to sit around so they COULDN’T work at the Olympic sites (and some of the blokes volunteered to work there before this debacle), that’s 10 men at just one site, how many others were there doing the same?”

    Sounds like fraudulently getting cheap taxpayer-funded labour whilst pocketing nearly the full whack for the contracted numbers of staff…

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