French firm Atos Healthcare assessed 1.3million people on incapacity benefit for the Tory-led Coalition, ruling 150,000 should get a job.
But the decision was overturned and a Commons select committee said Atos’s “unacceptable” blunders cost the taxpayer £30million a year.
Campaigner John McArdle called Atos’s involvement an “insult”.
He added: “Because of them, many disabled people will have to wait months to get their benefits back. Their sponsorship is unacceptable.”
The International Paralympic Committee said it had worked with Atos only on IT projects.
Atos Healthcare was unavailable for comment.