Temporary contractors employed by Stallion Security Consortium withdrew their labour from four World Cup venues after claiming they were not being paid what had been agreed, and the South African police were forced to step in and provide security instead in Cape Town, Durban and at Johannesburg venues Ellis Park and Soccer City.

The local organising committee (LOC) of the tournament said they had cancelled their agreement with Stallion following the start of the dispute, but the company say it was they who ended the contract and said they had actually negotiated to pay the workers more than the LOC were initially recommending.

A statement from Stallion read: "Stallion understands that the LOC has made various public statements to the effect that it played no role in determining the rate of remuneration payable to Stallion's guards for the FIFA World Cup. That is false. The Private Security Industry Regulatory Authority (PSIRA)-linked rates were determined at the LOC's insistence.

"Whilst Stallion is precluded by the contract's confidentiality clause from divulging specifics, the company can confirm that the rate of remuneration paid to its security guards was determined by the LOC and was based on rates recommended in the PSIRA tariff.

"In fact, in respect of match-day guards, Stallion successfully negotiated the LOC upwards to time-and-a-half on the PSIRA tariff.

"A dispute has now arisen between Stallion and the LOC, resulting in the agreement between Stallion and the LOC being cancelled. We cannot comment on the merits of the dispute at this stage, as it is likely to become litigious."

Stallion chief executive Clive Zulberg said: "We deeply regret the circumstances that have arisen, and the job losses suffered by the majority of the security guards as a result of incitement by a few.

"We are mystified by some of the exorbitantly high rates being claimed (was due to the workers) in some quarters."

Jackson Simon, the national co-ordinator of security workers for the South African Transport and Allied Workers Union (SATAWU) said earlier this week that workers had been promised R500 (around £45) per match but had actually received between R190 and R200.

mfl