CMA faces potential conflicts of interest in Telegraph deal

A DIRECTOR of the competition regulator has pledged to recuse himself from any review of the Abu Dhabi-backed takeover of The Telegraph owing to potential conflicts of interest.

Murdoch Maclennan, a non-executive board member of the Competition and Markets Authority (CMA), was chief executive of Telegraph Media Group between 2004 and 2017.

He is also chairman of the Irish arm of Mediahuis, a Belgian newspaper group that signed up to bid for The Telegraph last year. Mr Maclennan said: “If there are any board meetings where they are discussing it [the takeover] I’ll recuse myself, of course.”

The veteran media executive, who is also chairman of the Press Association, has not yet been formally recused.

However, he insisted he was not involved in any discussions about the deal and would not be given access to any relevant documents.

It comes as the financial management of The Telegraph under the Barclay family, including during Mr Maclennan’s time as chief executive, is under scrutiny as the business prepares for new ownership. It has been reported that advisers to the independent directors alerted the National Crime Agency to suspicious financial activity. It is understood the concerns relate to the movement of funds between Barclay family companies. A spokesman for the Barclay family said the accounts had been fully audited and signed off by PWC.

Mr Maclennan dismissed any concerns about the Barclays’ ownership of The Telegraph, saying they had always been open in their dealings during his time as chief executive.

The CMA and Ofcom are currently reviewing a planned takeover of The Telegraph by Redbird IMI, a joint venture that is majority backed by Abu Dhabi’s Sheikh Mansour, owing to concerns about the threat to press freedom.

The regulators must report their findings to Lucy Frazer, the Culture Secretary, by Jan 26. However, Ms Frazer could then trigger an in-depth “phase 2” investigation by the CMA, which could last 24 weeks or more.

Regulatory insiders insisted robust safeguards were in place to address potential conflicts of interest, including recusal. A CMA spokesman said: “Board members have no role in the CMA’S investigation or decision-making regarding this merger.”

Redbird IMI, which is fronted by Jeff Zucker, the former CNN chief executive, has put forward proposals for a trust of media luminaries that it says will protect independent journalism at The Telegraph.