Mayor widens London Stadium investigation

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Boris Johnson will be asked to justify his management of London’s Stadium as part of an in-depth investigation into the “skyrocketing” costs of converting the Olympic Stadium for West Ham.

The investigation, commissioned by London Mayor Sadiq Khan was announced last year after transformation costs increased again by £51m. The costs include an estimated £8m every year to move supposedly retractable seats, installed to bring football fans closer to the action, off the track to allow athletics every summer. The bill for conversion has risen from £272m to £323m, and the total cost of the stadium to £752m.

The investigation’s terms of reference, published on Friday, make it clear that Mr Johnson, now Foreign Secretary, is one of a number of officials who will be asked to explain their conduct during the stadium’s troubled path since the Olympics.

The investigation will look at every stage of the stadium’s design and construction, the key decisions that informed it, as well as the future operation of the stadium. It will make recommendations as to how to make the stadium more profitable, and reduce running costs that currently fall on the taxpayer.

The review will examine the role of stadium operator London Stadium 185, owned by French company VINCI, which has a 25-year deal to run the stadium, and may also consider the future of the stadium ownership structure. The investigation will also examine the original design decisions, taken by the then Labour Culture Secretary Tessa Jowell, Lord Coe, Ken Livingstone and the London 2012 leadership.

Announcing the terms of reference Mr 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.”

Three independent companies have been asked to bid to carry out the investigation, with terms of reference that include examination of:

:: All relevant construction, financial and operation arrangements

:: Key decisions, contractual commitments and financial projections

:: Due diligence and negotiations

:: The stadium’s ongoing financial viability and operating costs

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