MPs have urged that G4S should forego its £57m fee and be ‘black-listed’ from future public contracts following its failure to recruit enough staff to provide security for London 2012.

The House of Commons home affairs committee’s recommendation to exclude G4S from future contracts prompted the Cabinet Office to respond that since June it has been taking the performance history of suppliers into account when tendering, the Guardian reports.

G4S previously announced a £50m loss over its Olympic failings, a week after telling Recruiter that the problems experienced in the Olympic Games would not be repeated in the second event, the Paralympic Games.

In a statement released on its website, G4S states: “The Board and management of G4S have taken responsibility for the inability of the company to deliver, in full, on the Olympic security contract and apologise for this failure.”

It adds: “As explained by both G4S and LOCOG to the Committee, the £57m ‘management fee’ is not a profit. It relates substantially to real costs which have been incurred such as wages, property and IT expenditure. The final financial settlement is currently under discussion with LOCOG.”

It also thanks the military and police who worked alongside G4S staff, as well as thanking G4S staff, and saying that the findings of an independent report by PwC are due to be announced within the next 10 days.