An LDA spokesman said the funding gap could be absorbed through cost cutting.

BBC: Funding gap in Olympics accounts

Two senior members of staff have been suspended from the Olympic Legacy Directorate (OLD), a department within the LDA, following the discovery.

BBC: Funding gap in Olympics accounts

The LDA said the food and drink industry was the best performing manufacturing sector in London's economy in recent years, employing more than 31, 000 people.

BBC: United Biscuits owns some of the UK's best known brands

The schemes in danger of being axed were not named but the LDA is looking a projects which are considered "relatively poor value for money".

BBC: Olympic land budget's ?159m hole

And an LDA spokesman told BBC Sport that many businesses had decided to delay negotiations until after 6 July, when the IOC is due to choose the winner.

BBC: [an error occurred while processing this directive]

But the LDA insisted there was no evidence of wrongdoing.

BBC: Funding gap in Olympics accounts

"We're not pretending it's great news, " the LDA spokesman said.

BBC: Funding gap in Olympics accounts

Meanwhile, the LDA says it has also contacted two counties about taking on the stadium after 2012, although the four most obvious candidates - Surrey, Middlesex, Essex and Kent - deny they have been approached.

BBC: MCC prepares for stadium rivalry

In addition to its legal services, the firm registered as an agent of a foreign principal under the Foreign Agents Registration Act of 1938 (FARA) as well as the Lobbying Disclosure Act of 1995 (LDA) to press the Kuwaiti detainees' cause on Capitol Hill.

CENTERFORSECURITYPOLICY: Gitmo's guerilla lawyers