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The investigation into a £160million black hole in the London Development Agency's Olympics budget has cost £1million.
Taxpayers will pick up the tab after accountancy firm KPMG conducted an inquiry into a bungled project to buy 500 acres of land in Stratford to make way for the 2012 Games.
Facing a City Hall investigation into the fiasco today, LDA bosses admitted the immediate consequences for London council tax payers after the Olympic budget spiralled to £1.15billion.
Huge cuts to LDA-funded projects have been ordered to save £21million this financial year. They include:
Visit London's budget slashed by £4million to £13million
Delaying compulsory purchase order payments around Wembley
£600,000 cut to an Olympic construction skills training programme.
LDA chairman Harvey McGrath revealed that the investigation was triggered after the Mayor ordered tighter controls on the agency's spending.
The request in May for a £7million cheque tipped over the £220million budget for land clearance.
This led to the discovery that compensation payments to 200 firms relocated due to the Olympics had been running over-budget for several years.
Mr McGrath admitted that the accountant with daily responsibility for logging these payments did not have professional qualifications.
Four staff from the Olympic Legacy Directorate are facing disciplinary action.
Reader views (2)
Where has the money gone? It's obvious that Tessa Jowell and Stupid Coe need some extra money to go shopping with.
- Dan, London, 22/09/2009 10:31
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Millions wasted here, hundreds of millions wasted
there; holes in the ground, holes in the budget;
pompous, arrogant hasbeens being paid millions. All
this before the drugged-up 'athletes' arrive!
Biggest waste of money ever spent in London. I hope I
don't have to go anywhere near central London while
this garbage is on. And the tax payer as usual will
be paying for this for years to come.
- Lb, Bromley, 17/09/2009 21:02
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