British Telecom has filed a criminal complaint with Italian prosecutors over an accounting scandal at its Italian unit and has handed them computer records and also dispatched its head of compliance to Milan to give evidence.
In the complaint, filed on March 21 and reviewed by Reuters, BT accuses several former Italy executives and other employees of breaking company rules and unlawful conduct. It comes five months after the phone company first revealed financial irregularities at BT Italy and took the first of two write-downs totalling 530 million pounds ($680 million).
-- The complaint is consistent with allegations of irregularities and bullying first made public by Reuters on March 30. A BT official at the time declined to comment when asked if the company had filed a complaint.
-- Reuters first saw the complaint, which typically is not a document that is made publicly available, earlier this week.
-- The Reuters investigation found 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. All of these practices had been going on since at least 2013, current and former staff have said.
-- The BT complaint asserts to prosecutors, who began investigating the unit's accounting problems in January, that BT is itself a victim of any fraud found to have taken place.
-- The company's director of ethics and compliance, Gareth Tipton, met Italian magistrates in Milan in the second half of February, two sources with knowledge of the investigation told Reuters. BT also gave prosecutors computer records collected during an internal investigation at the Italian unit in late summer 2016, the sources said.
-- BT spokeswoman Gemma Thomas said in a statement: "We cannot comment on the ongoing investigation." Reuters contacted Tipton by email who referred to the statement from Thomas.
-- The complaint alleges misconduct against three former senior executives of BT Italy and two former employees, though it does not make a specific criminal accusation against any of them.
-- It alleges former BT Italy chief executive Gianluca Cimini was responsible for grave violations of corporate governance rules in relation to contracts and suppliers, and for using intimidatory behaviour when dealing with staff.
-- It alleges former chief operating officer Stefania Truzzoli manipulated results that were used to award staff bonuses and that she also manipulated data that was communicated to BT Europe during the internal presentation of results.
-- Cimini and Truzzoli declined to comment for this article. Truzzoli said she would respond to the allegations to the relevant authorities.
-- The BT complaint alleges former chief financial officer Luca Sebastiani failed to report financial irregularities to his managers and also induced an employee responsible for invoicing at BT Italy, Giacomo Ingannamorte, to issue fake invoices.
-- It also alleges Luca Torrigiani, formerly responsible for government clients and other large accounts in Italy, violated BT's rules in the manner in which he chose suppliers and for receiving a payment from an agent of BT Italy.
-- The complaint said Cimini, Truzzoli, Sebastiani, Ingannamorte and Torrigiani were all sacked. It did not elaborate on any of its allegations.-Reuters