BT ‘taking legal action over Global Services errors in Italy’, says agency
The Reuters news agency says BT is giving evidence to magistrates in Milan over the alleged fraud that caused £530m write-down
The Reuters news agency has uncovered court documents that show the company has filed criminal complaints at former executives of its Italian subsidiary.
BT wrote off £530 million in January 2017 when it uncovered what it called accounting errors in the Italian division of BT Global Services.
Now, says Reuters, the UK-based company has handed over details to prosecutors in Milan v.
Reuters says its investigation shows that “a network of people in BT Italy had exaggerated revenues, faked contract renewals and invoices and invented bogus supplier transactions in order to meet bonus targets and disguise the unit’s true financial performance”.
BT has dispatched its head of ethics and compliance, Gareth Tipton, to give evidence to the magistrates in Milan who are considering the case. BT is saying that it is a victim of the fraud, says Reuters, and adds that BT is not commenting on the report.