London Development Agency forced to make cuts after it did not properly account for costs of relocating landowners of Olympic park
The London Development Agency is set to cancel and delay at least £100m-worth of work in the current financial year to make up for poor accounting.
The development agency has been forced to make the cuts because it failed to properly account for costs involved in relocating landowners of the Olympic park. According to the LDA’s internal report, it has already identified £45m-worth of savings, according to an internal report.
Andrew Travers, the LDA's group director for resources and performance, said the overspend "has major implications for the medium and long-term financial position of the agency".
The agency claims savings can be made by scrapping projects "which offer relatively poor value for money" where appropriate and deferring projects "for consideration in future years business planning".
An independent report by accountants, KPMG for the agency puts the total at £159.8m.