Further details of investigation into London Stadium finances released
Sadiq Khan today (20 January) released further details of an investigation he has ordered into the finances of the London Stadium.
His team has approached several independent companies to invite them to bid to carry out an investigation that the Mayor of London ordered following the news that his predecessor’s conversion of the stadium from an athletics venue into a permanent home for sporting and cultural events had cost £50m more than previously announced, as well as resulting in major practical problems with its operation.
The companies invited to bid have been asked to demonstrate how they would provide an expert analysis of:
· The history of the London Stadium including all relevant construction, financial and operational arrangements, with a particular focus on the stadium’s conversion into a multi-use arena and the subsequent negotiations and arrangements.
· The key decision points and contractual commitments that were made. That includes the financial and operational projections that informed the investment of public money into transformation works, and who was responsible for them.
· Whether the work leading to the decisions and commitments made was sufficiently robust and subject to appropriate levels of due diligence and negotiation to ensure that value for money was achieved for the taxpayer.
· The stadium’s financial viability in terms of its ongoing and future operating costs, and the income of the current working arrangements.
The company chosen to carry out the investigation will also be asked to produce a report for publication that identifies any lessons that can be learnt. Their report will be expected to cover three distinct phases in the history of the London Stadium, which include:
· The Olympic bodies’ original decision making in determining the design and nature of the Stadium built for the Games and what thought was given to how the Stadium would be used post-Games.
· The decision making in the tendering for and delivery of the Stadium transformation in light of the original design and its legacy objectives.
· Decisions relating to the current operational arrangements for the Stadium.
The Mayor of London, Sadiq Khan, said: “There are some huge questions that need to be answered about the financing of the London Stadium. We need to find out how on earth the transformation costs were allowed to skyrocket, and whether appropriate checks were made before key decisions were made. But just as important in this process will be looking to the future to ensure we get the Stadium into a situation where we are able to reduce its cost to the taxpayer and it can operate as a successful multi-purpose stadium that our city can be proud of.”
Notes to editors
An announcement regarding the company chosen to carry out the investigation is expected to be made in February 2017.