BT fights off calls to fire the boss

EMBATTLED BT fought off calls for boss Gavin Patterson to quit over the £530m accounting scandal which shareholders have branded ‘the Italian Job’.

During the company’s annual general meeting in London, angry investors demanded explanations from outgoing chairman Sir Michael Rake about how the fraud at its Italian business had happened and whether anyone had been held accountable.

They also complained about the company’s £14bn pensions deficit, its troubled network and cables division Openreach and a record £42m fine from telecoms watchdog Ofcom.

Rake, presiding for the last time before he steps down in November, admitted the issues had ‘overshadowed’ the company and formed a ‘perfect storm’ that hammered its share price.

But the 69-year- old rejected calls for Patterson to quit over the BT Italia scandal – and a vote afterwards saw shareholders overwhelmingly back him.

Rake told investors: ‘In a very large company you cannot take steps that would further damage it in a crisis. I do not believe these events reflect the general culture at BT.’ He pointed to the £4m pay cut that had been taken by Patterson, 49, and said managers in Italy had been sacked.

Corrado Sciolla, the former head of BT Europe, resigned in January. Speaking after the meeting, Patterson admitted that the Italian accounting scandal had been ‘a humbling experience’.

He added: ‘Even if some of these issues relate to previous years, it still comes out on my watch and I take responsibility for it.’

He rejected suggestions that he had feared for his job. Patterson said: ‘Shareholders continue to support me. I think they understand Italy is a very unfortunate situation – and one we are extremely angry about still – but it was a very sophisticated fraud and we have acted swiftly to address the situation.’

Patterson insisted Openreach, which has been accused of delivering poor customer services and being slow to carry out repairs, was improving steadily.