Johannesburg - The contract to provide security for four of the World Cup stadiums was cancelled by the security company, Stallion, and not Fifa, the company said on Thursday.
Stallion Security CEO Clive Zulberg confirmed via a public relations firm that the company had cancelled the contract.
"A dispute has now arisen between Stallion and the LOC [Fifa local organising committee], resulting in the agreement between Stallion and the LOC being cancelled," said Zulberg in an earlier statement.
"We cannot comment on the merits of the dispute at this stage, as it is likely to become litigious."
The cancellation of the contract to provide security services to the Cape Town Stadium, Moses Mabhida Stadium in Durban, and at Ellis Park and Soccer City in Johannesburg came after a series of strikes by security personnel.
Guards at the Moses Mabhida stadium started striking on Monday night, demanding more money. They had to be dispersed by police.
The strikes spread to the other stadiums controlled by Stallion during the week, and police had to fire stun grenades and rubber bullets at striking workers at the Cape Town Stadium on Thursday.
Zulberg said the salary rates of the staff were determined by the LOC.
"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 2010 Fifa World Cup. That is false," said Zulberg.
"The Psira [Private Security Industry Regulatory Authority]-linked rates were determined at the LOC's insistence," he said.
"In fact, in respect of match day guards, Stallion successfully negotiated the LOC upwards to time-and-a-half on the Psira tariff."
Zulberg said a confidentiality clause prevented the company from divulging any specifics on the contract between it and Fifa, including the reason why the contract was cancelled.
The LOC declined to comment.
"We have nothing to say about this matter," said LOC spokesperson Rich Mkhondo in an SMS.