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Ken accused of 'hiding £20bn cost of Olympics'
Ed Howker, Evening Standard8 Apr 2008
Ken Livingstone faced accusations of "suppressing" the true cost of the Olympics today as a former senior official claimed it could top £20 billion.
The ex-chairman of the body responsible for delivering the Games claimed the Mayor had kept quiet fears about the soaring budget.
Jack Lemley, who was forced out of the Olympic Delivery Authority in October 2006, said he wanted to be upfront with the public that the cost of building the Stratford venues would be vast.
Mr Lemley said that from "very early on," the ODA was working to a cost estimate for the Games of "well over £12 billion" - more than three times the £3.3 billion publicly claimed at the time.
He told the Standard he was not allowed to tell the truth. The revelation will reignite controversy over the mounting cost of the 2012 project, with the official budget now standing at £9.3 billion.
But Mr Lemley said he believed the final cost would be £20 billion, because of the state of the Stratford site. "We were never able to really go public with the full budget," he said.
"That was always suppressed and the Mayor didn't want any significant growth in these budgets because it would create a bigger tax.
"I had advocated telling the public because I felt like the credibility of the process would be eroded ... as time went on and it became evident what the [real] costs are."
Last year Olympics Minister Tessa Jowell announced that the budget had risen to £9.3bn. But Mr Lemley described that figure as "ridiculous" and said he was now "positive" the budget would rise to £20 billion.
Mr Lemley said he was "run off" (forced out) from the ODA because " noone wanted to believe" the figure. "I was deeply concerned about the [ODA] organisation and the lack of urgency and I was worried about the dates - even then we had a desperately short time to do our work," he said.
Mr Lemley said the ODA had not taken sufficient account of "the polluted water issues" and "[a] sewage treatment plant that discharges hundreds of thousands of cubic metres of raw sewage" near the Olympic site.
He said £20 billion "was a figure I held all the time. But nobody wanted to hear it because they'd have to admit that they were culpable for suppressing the data."
Mr Lemley was forced out of the ODA in acrimony after being accused by the Mayor of working with failed Tube consortium Metronet.
In a letter to Tessa Jowell, seen by the
Standard, Mr Livingstone said he could not 'continue to have confidence in Jack Lemley' because he was engaged in discussions with Metronet in a private capacity to seek work from them'.
But Mr Lemley said: "I had been cleared by everyone concerned - I wouldn't have done it otherwise. I think Ken is capable of anything."
An ODA spokesman said: "Jack's view is not shared by anyone working on the project. The Chairman believes the project can be delivered within budget."
A spokesman for the Department of Culture Media and Sport described the claims as "ridiculous," saying: "The budget for 2012 was still months away from being agreed when Mr Lemley left his job as chairman of the Olympic Delivery Authority in the autumn of 2006. It is simply untrue to say that the real budget is £12bn and that this figure has been suppressed."
The Mayor's office declined to comment.
Reader views (12)
Another example of a lot of money and everyone getting backhanders how much of this money has been misused - Ken should be sacked immediately
- Edriordan, Wisbech, 09/04/2008 07:41
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But Mr Lemley said:"...I think Ken is capable of anything." That observation hasn't passed me by, I think Ken is a nasty piece of work. I also believe he would given the chance live well up to that comment. It also has been my belief that it could well top that quote of Twenty Billion.
- Jason Bierce, Richmond Surrey, 08/04/2008 23:37
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How long will it take before the true cost of the Main Olympic Stadium is admitted to be the best part of £1billion and just for 10 days use! ... and to think that new Wembley could have been used for athletics all along!
- Edward, London, 08/04/2008 22:56
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Fraser, you need to realise that the name Ken Livingstone is an anagram for Robert Mugabe. Both are dictators who refuse to be accountable to the electorate and will hold on to power at any cost.
- Adam, Harrow, UK, 08/04/2008 17:24
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Even as 'Cons.', I twice voted for Ken, because I trusted him to understand 'people'. That can't have changed, he's the same, but is he now into the zone of 'ends justifying the means'? He/they should remember that no-one sensible really wanted the 'Olympics' (belongs in Greece). Never did, never will.
- Steve, Southfields, 08/04/2008 16:28
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If there is "even a crumb of truth" in this latest revelation then I believe that Ken Livingstone has "no alternative" but to resign immediately and withdraw from the Mayoral race!
- Fraser, Telford Park, 08/04/2008 15:48
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How was he able to override the will of Londoners and apply for the Olympics here? We have no transport or security system to speak of and the city and country is bankrupt thanks to Red Ken and his Nu Labor friends!
- Peteo, Islington, London, 08/04/2008 15:25
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He can't be hiding the true cost of the Olympics for the simple reason that neither he nor anyone else has the slightest idea what those costs are. If I were Boris I'd be tempted to dream up a number somewhere close to £50bn to float as a bill he's been left with on 'close examination of the books (such as they are)' to leave himself some wriggle room.
- Paul, London, 08/04/2008 13:48
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Of course the Mayor's office will decline to comment. They've lied often enough and have been found out.
True Ken will stop at nothing with his lies. Can't wait for the wretch to be voted out.
- Asw, Hong Kong, 08/04/2008 13:32
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I am not surprised Ken is hiding the true figues. I agree with Mr Lemley's comments that Ken is capable of anything. Do we get a roof on our Olympic stadium included with the £20 million figure. I hope so, because the £3.3 billion plan showed a stadium with a roof on it.
- Mark Funnell, London England, 08/04/2008 13:04
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If the redevelopment of Wembley is any sort of precedent the critical period for costs will be the final nine months when the 'Ransom factor' comes into play. The tragedy is the number of worthwhile projects that have been robbed to support this most 'Grand Folly'; including the facilities needed to produce Olympic athletes
- Jerry, London, 08/04/2008 12:57
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I'm not sure what bothers me more; the idea that the Mayor could deliberately tell people who work for us to lie to us or the idea that he appears to have lost control of his workforce at City Hall. Is anarchy reigning free at the centre of London's public finances?
- Pottedmeat, London, 08/04/2008 12:42
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