But Nick Buckles, the chief executive of G4S, will keep his job despite the Home Affairs Select Committee last week accusing the firm of misleading the British Government. 

David Taylor-Smith, chief operating officer, and Ian Horseman Sewell, managing director of global events, both resigned following the publication today of the report, carried out by PwC. 

"The Board confirms that it is in the best interests of the company and of all its stakeholders that Nick Buckles should remain group CEO," G4S said, following an internal review of its handling of the Olympics contract.

"Whilst the CEO has ultimate responsibility for the company's performance, the review did not identify significant shortcomings in his performance or serious failings attributable to him in connection with the Olympic contract."

G4S chief operating officer David Taylor-Smith (left) has been forced to resign after the London 2012 security shambles but chief executive Nick Buckles (right) has survived

The Government had to draft in 4,700 extra troops on the eve of the Olympics after G4S failed to meet its commitment to provide 10,000 security guards.

"While this was a a hugely complex contract, G4S had the capaibility to fulfil it - the problems came about in delivery," said John Connolly, chairman of the company.

"Nobody knew about [the impending Olympic crisis] so no one could have advised me."

Buckles was exonerated by PwC, who claimed it "did not identify significant shortcomings of his performance".

"The review concluded that Nick as group chief executive was not directly at fault or associated [with the Olympic contract]," said Connolly.

G4S has said the episode will cost the company about £50 million ($81 million/€62 million) as it struggles to recover from the fiasco.

Pre-tax profits slumped 60 per cent to £61 million ($99 million/$€77 million) in the six months to the end of June, hit also by restructuring costs after it slashed 1,100 jobs worldwide.

Net profits tumbled 74 per cent to £30 million ($48 million/€38 million).

"We're very proud of how the country did with the Olympics, but we're not proud of our contribution," admitted Connolly.

The company said it would "take a number of further actions, learning lessons from this contract," including stricter risk assessment for new contracts and better project management.

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