Moore Stephens has been appointed as the forensic accountant to the Mayor of London’s review of the former Olympic stadium, which has seen the costs of its conversion from an athletics venue into a multi-use arena almost triple from the original estimate
The firm will examine the financial sustainability of what is now known as the London Stadium, and will conduct an investigation into the decision making and financial issues around its transformation and the lessons to be learnt from the process.
According to the London Assembly’s resourcing decision, Moore Stephens has been appointed under a consultancy framework that means the firm’s standard daily rates are discounted by between 70% and 90%,and the final fee is expected to be around £140,400.
The stadium was originally constructed for the 2012 Olympic and Paralympic games. In 2013, a 99-year tenancy was granted to West Ham United Football Club.
A joint venture, between London Legacy Development Corporation (LLDC) and the London Borough of Newham, was also set up in 2013 to transform the stadium into a multi-use arena that would help bring large numbers of people and employers to the local area.
In 2014, the initial budget for the transformation of the stadium was £115m. This rose to £272m in 2015. By the time West Ham United moved in 2016/17, the total costs had reached £323m.
In late 2016, the Mayor of London, Sadiq Khan, expressed concern over the rising costs and ordered an investigation.
Moore Stephens’ report is due to be presented to the London Assembly in June and published later in the summer. It will cover three distinct phases in the genesis and life of the stadium: the Olympic bodies’ original decision making in determining the design and nature of the stadium and how it would be used post-games; the tendering and delivery of the stadium transformation; and decisions pertaining to the current operational arrangement for the stadium.
Merryck Lowe, partner and head of Moore Stephens’ investigations group, said: ‘We are delighted to have this opportunity to work for the Mayor’s office on behalf of all Londoners and to apply our independence, incisiveness and clarity of thought to these issues.’
The London Assembly’s resourcing decision, London Stadium review - appointment of lead team, is here.
