Security firm G4S said today it will meet the full cost of deploying 3,500 extra troops to the London Olympics after it failed to supply sufficient numbers of security guards.
Here is a timeline of the events leading to the Olympics security fiasco:
December 2010: The London 2012 Organising Committee (Locog) appoints G4S to provide 2,000 security staff for the Olympic Games in a deal worth £86 million.
March 2011: G4S is made the official "security services provider" for London 2012 and will provide training and management for the 10,000-strong security workforce, including a mix of military, private security guards and unpaid volunteers.
London 2012 chief executive Paul Deighton says the firm will help ensure security provisions are "robust and of the highest professionalism".
December 2011: The Government announces that the number of security guards for the Games will rise to 23,700 - more than double Locog's original estimate of 10,000. Security costs from the Olympics budget have risen from £282 million to £553 million.
G4S's initial contract with Locog to provide 2,000 security staff rises to 10,400 personnel, in a contract now worth £284 million.
Confidential documents obtained later by the Daily Telegraph suggest that G4S's management fee rose from £7.3 million to £60 million. Almost £34 million of the increase was for the G4S "programme management office" overseeing the security operation, compared to an increase of just £2.8 million in the firm's recruitment spending, the paper said.
9 March 2012: A report by MPs says it is "staggering" that initial estimates about security costs were so wrong.
The Public Accounts Committee's report states that Locog have been forced to renegotiate their contract with G4S for venue security from a "weak negotiating position".
12 July: Defence Secretary Philip Hammond announces up to 3,500 extra troops will be needed for security duties during the Olympics amid fears that G4S will not be able to meet the needs.
Home Secretary Theresa May tells MPs there was "no question of Olympic security being compromised" following the decision to draft in additional servicemen and women.
13 July: Shares in G4S closed down 1.5%, or off 4.3p to 278.7p, with more than £150 million wiped off the company's market value in two days.
G4S says it stands to lose up to £50 million as a result of the London Olympics security fiasco. The company adds that it "deeply regrets" the problems which have meant troops being drafted in at the 11th hour to make up a shortfall in security guards.
14 July: G4S chief executive Nick Buckles says the firm will be facing a penalty payment "in the range" of £10 to £20 million as a result of the failure to meet its commitments.