Ex-BT Group (BT.A) bosses named in investigation into alleged fraud in Italy unit. Prosecutors allege network of BT Italy employees fabricated contracts and invoices. Three former BT executives, including two who were based in London, have been named in an investigation into alleged accounting fraud in BT’s Italian division, a scandal that forced the company to write off £530m and claimed the scalp of its European chief. In a document summing up their case, prosecutors in Italy alleged that a network of BT Italy employees fabricated contracts and invoices, as well as inventing fake transactions, to hit bonus targets and hide the unit’s true financial position. Under Italian law, the claims mark the beginning of a three-week period during which the people being investigated have the opportunity to explain why they should not be charged.
Debenhams (DEB) hopes rise as major supplier adds support to cash fillip. Shares in the department store chain are up, but analysts say its future is still in the balance. Hopes for the survival of Debenhams have risen after the department store confirmed it had agreed a £40m lifeline from lenders and a deal with a major supplier to improve the quality of its own-label clothing. The company said it had secured an additional 12-month credit facility with its existing lenders as “a bridge” towards longer term refinancing. Sergio Bucher, the chief executive, hailed the new 12-month credit facility, which was first flagged in the Guardian, as a “first step in our refinancing process”.
Brexit delaying public and private projects, says Galliford Try (GFRD). Construction firm posts strong half-year results but says Brexit is already a drag on sector. Brexit is already delaying private and public sector projects, according to the construction firm Galliford Try, which said companies are holding off on investment while the government is preoccupied with preparations for leaving the European Union. In comments accompanying strong half-year results, the firm warned that a no-deal Brexit would cause “a potential severe decline in consumer confidence and economic activity in general”. It predicted that a more controlled departure under the terms of a negotiated withdrawal agreement would be much more manageable and would have no “significant direct impact” on the business.
