London 2012 Olympics: Games delivery under threat as pressure begins to bite ahead of final inspection Delivering the project successfully has become a priority for ministers and officials and there is particular concern among advisors close to David Cameron that the strained relationships do not knock the project off course. In an attempt to ensure that the project remains on track, Heywood has effectively taken personal responsibility for trying to smooth out tensions and ensure that the Games, the overwhelming short-term priority for the government, are delivered. Heywood, whose influence in Downing Street has increased following the departure of blue-sky thinker Steve Hilton, has effectively taken charge of steering the project, bringing all the departments and Locog together in a Cabinet Office committee. At the heart of Whitehall frustration with Locog is its approach to spending nearly £1bn of public money it has been entrusted with, and its highly centralised management structure under chief executive Paul Deighton. Under the terms of the host city agreement signed with the IOC, Locog is a private company responsible for raising its £2.2bn operating budget from the private sector. Unlike other private companies, however, Locog is underwritten by the UK taxpayer, with the Treasury liable for any deficit. With the government reliant on Locog for delivery but the taxpayer bearing all the risk, their private status is a matter of increasing debate. The issue has intensified as Locog has been given responsibility for spending more than £850 million of public money, more than half on security following a huge error in the initial estimates for the number of security guards required. Both the Home Office and Locog blame each other for the error, which cost an additional £271 million of public money to resolve. Locog's structure, which several observers say is similar in character to that of Goldman Sachs, the company in which Deighton established his reputation, has been one of its strengths but, in dealing with the government, it may be a weakness. Deighton has been hugely impressive in the six years since he took up his £480,000-a-year post and he stands head and shoulders above the vast majority of his peers in the sports business. He has brought a mastery of detail to the hugely complex project, but exercises a great degree of personal control, and decision-making is understood to be concentrated in the hands of a very small number of executives. Sources say this arrangement, which can lead to "bottlenecks," has caused "intense frustration" in Whitehall. Tensions with Locog are matched by internal government friction, understood to be particularly acute between the Home Office and the Department of Culture. DCMS has a central role, with its Government Olympic Executive attempting to co-ordinate between all government departments and Locog. The Home Office and Home Secretary, Theresa May, are understood to have raised concerns over the GOE's role, and have pressed for a direct working relationship with Locog. Locog insist that its relations with the government have improved as a result of Heywood's intervention, and that they have a good working relationship with key departments and agencies, including the Home Office and Transport for London. They acknowledge however that the question of who takes responsibility for the considerable financial and reputational risks that come with the Olympics, has led to some "difficult conversations." Deighton and Coe can point to their achievements so far as proof that their model has worked so far, but it may become harder to justify should Locog's budget, which had as little as £5 million of "headroom" in its contingency fund, according to a recent Parliamentary report, come under more pressure. In a statement, Locog said: "There are 19 government departments, the Mayor's office, London transport, security and development agencies and hundreds of local authorities working with us to deliver a Games this country will be proud of. There are massive amounts of great work being done day in day out across the Games and we have never been more aligned with our partners in delivering this amazing event and making the most of it for the UK. Adidas cover up Such is the level of paranoia at ambush marketing at the London Olympic Games that a soldier injured in Afghanistan was required to cover up the logo on his trainers when he appeared at an Olympic torch relay event this week. Aidan Kirkwood, who will run with the torch through Tow Law in Northumberland, had white stickers placed over the Reebok logo on his footwear, in order to avoid a clash with Adidas, who have designed the torch bearer's white-and-gold pyjamas, which they will all wear.