Telegraph directors remain silent on National Crime Agency alert

THE independent directors of The

Telegraph have declined to comment on a news report that the National Crime Agency has been alerted to suspected financial irregularities uncovered as part of preparations for new ownership.

It is understood that advisers to the independent directors, Stephen Welch and Boudewijn Wentink, issued suspicious activity reports to the NCA last year after reviewing the accounts of Telegraph Media Group (TMG) and associated companies.

The reports, required under the Proceeds of Crime Act, were triggered by the movement of sums of money between TMG and other companies controlled by the Barclay family. Sources said that under their ownership, orders to pay out sums of cash in the multiple millions of pounds at very short notice were received by the finance department.

The Barclay family lost control of The Telegraph and the independent directors were appointed in June after Lloyds Banking Group sent in receivers. The bank had lost patience with the Barclay family over an overdue debt of £1.2bn, which had been secured against the group of companies including The Telegraph and The Spectator magazine.

The issuing of suspicious activity reports was first reported by The Times.

A source close to the board last night said the directors were unaware of any open NCA investigation into The Telegraph. However, the NCA acts as a clearing house for hundreds of thousands of suspicious activity reports every year and forwards them to other agencies including HM Revenue and Customs and the Serious Fraud Office.

A spokesman for Telegraph Media Group declined to comment on the potential involvement of either. The NCA declined to comment.

A spokesman for the Barclay family said: “The accounts, including to the year ended Dec 31 2022, have been fully audited and signed off by PwC.”

Their debt to Lloyds was repaid last month with new loans including £600m from RedBird IMI, an Abu Dhabi fund, which hopes to convert the lending to ownership of The Telegraph.

Yesterday it said that an “editorial charter” and a trust of media luminaries would protect journalism. Three-quarters funded by Abu Dhabi, Redbird IMI is seeking to persuade an inquiry by the media regulator, Ofcom, that it does not represent a threat to press freedom.

It said it had submitted the details of legally binding proposals that would establish a governance structure to ensure editorial independence of

The Telegraph and The Spectator, which it is also seeking to acquire. RedBird

IMI would effectively enter into a contract with the Government that would pledge that the editor would have control of all editorial matters.

The “charter” would also protect the editor’s freedom to hire and manage journalists, and bar anyone from RedBird or IMI from seeking to influence

Telegraph journalists.

Compliance with these undertakings would be monitored by a five-person editorial trust, made up of “independent public figures of senior standing” with experience in media, journalism, compliance, governance or ethics.

RedBird IMI said it is in talks with potential trustees but declined to name them. The trust would need to approve the appointment of any new editor, who would be chosen by the head of RedBird IMI, Jeff Zucker, the former CNN chief. A spokesman said: “We are fully committed to the editorial independence of

The Telegraph and The Spectator.

“This is a business investment for us and we will play no part in the running of The Telegraph or The Spectator.”

Ofcom must deliver recommendations to Lucy Frazer, the Culture Secretary, by Jan 26.

A further potential investigation by the Competition and Markets Authority could take several months and lead to the takeover being formally blocked.

If Ofcom’s findings derail RedBird IMI’s plans sooner, an auction would be relaunched. It previously attracted bidders including the publisher of

The Daily Mail and Sir Paul Marshall, the co-owner of GB News.