Interesting about G4S

G4S has promised to meet all the extra police and military costs including the bill for sending officers to cover for G4S staff failing to turn up for work.

Obviously they should. But it\’s not something we see being noted among those who want to shout about outsourcing, is it?

4 thoughts on “Interesting about G4S”

  1. Interesting that G4S didn’t establish a special-purpose corporate vehicle for the contract so they could let the vehicle go bankrupt and walk away from the losses.

    Perhaps the government is finally getting better at contract negotiations and making sure that the parent companies are bound into the contracts.

    You’d think everyone would have learned that lesson from the collapse of ITV Digital a decade ago – remember the Football League failing to pierce the corporate veil in court?

  2. My (limited) exposure to LOCOG contracts is that there is provision in the case of failure to supply such that the supplier a) gets clobbered with penalties b) has to find and pay for a supplier that can do the job.

  3. The one which seared this point into everyone’s brains in government wasn’t the First Division versus OnDigital, it was Metronet (where the SPV with GBP100m of equity ran up debt of several billion purchasing goods and services from its own shareholders, with the debt being ultimately guaranteed by the Treasury). Glad to see lessons have been learned.

  4. I find it suprising that so far the media don’t seem to have cottoned on to the fact that the people who have failed to turn up will be in theory, unemployed.
    Its a great advert, all this media coverage of the problems, for seeking foreign staff for jobs. Turning up for work is considered by many employers pretty essential in a job…

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