Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Olympics cash shortfall 'already solved' says LDA

The London Development Agency has insisted that it has already found the money to cover a £60 million shortfall in its Olympics budgeting.

The body, which has been acting as legacy client for the 2012 Games, called in forensic accountants at KPMG to investigate the forecasting discrepancy, which appears to be linked to future compensation payments to former landowners and businesses on the Olympic park.

It was reported this morning that two members of LDA staff were on indefinite leave while the investigation was completed, and that the cash shortfall could cause other infrastructure projects to be shelved.

But the LDA insisted the problem would not cause major problems for its projects. It refused to comment on individuals but said there was no evidence of wrongdoing.

An LDA spokesman said: “Since the new mayor has come in, we have been reviewing governance and procedures across the agency.

“As the last part of that review, and in preparation for the transition to the new Olympic legacy company, we have identified additional spending commitments within the Olympic Legacy Directorate that have exceeded our estimated figures.

“Because of the work we have already done to achieve greater value for money, we have been able to adjust our budgets and accommodate these commitments with minimal impact on our plans for London.”