13 July 2007
The Public Accounts Committee has reiterated criticisms of failures in the budgeting and risk management process for the 2012 London Olympics.
In a report published on July 10, the PAC says the Department for Culture, Media and Sport 'seriously underestimated' the costs of the Games, leaving the government financially exposed.
'It is worrying that strong arrangements for monitoring progress and managing risk are so far not in place,' said PAC chair Edward Leigh. 'If the delivery timetable slips, then the danger increases of delivery organisations having to pay more to contractors or reduce standards to ensure the Games open on July 27, 2012. This risk must be addressed by establishing suitable incentive arrangements with contractors.'
Leigh added that good causes supported by the National Lottery should be told when and by how much their income would fall as a result of the newly announced £9bn budget.
Liberal Democrat spokesman Don Foster was also critical. 'With £1.7bn set to be raided from lottery good causes, the least we should expect is for the money to be well spent,' he said.
PFjul2007
