Telegraph board flags ‘financial irregularities’ to government
The Telegraph’s independent directors have reportedly raised concerns with the government about possible financial irregularities within the Barclay family’s media asset books.
Appointed to oversee the newspaper during its transition period, the interim board directors have flagged historical issues in the company’s accounts to the Department for Culture, Media and Sport (DCMS), according to The Times.
The DCMS declined to comment.
Stephen Welch and Boudewijn Wentink joined the Telegraph Media Group’s board in June amid the newspaper’s transfer from the Barclay family to Lloyds, after it was forced into receivership for failing to repay debts of nearly £1.2bn.
A government order has barred the Barclay family from appointing new directors to the newspaper’s board.
The Barclay brothers, former owners of the right-leaning titles, recently restored the debt in an attempt to reclaim their titles. The amends were facilitated by RedBird IMI media fund, backed partly by a member of the Abu Dhabi royal family.
It plans to secure its ownership of the Telegraph through a debt to equity swap.
But media secretary Lucy Frazer stepped in last month, issuing a Public Interest Intervention Notice (PIIN). It has triggered ongoing investigations by the Competition and Markets Authority (CMA) and Ofcom, with an outcome expected by 26 January 2024.
Should Frazer opt for a Phase 2 investigation, the acquisition by RedBird IMI could face significant delays, possibly extending the timeline by over a year.
City PM could not reach the Barclay family for comment. It declined to comment to The Times.