BT Italia faces criminal investigation

27 Jan 2017

Italian prosecutors have opened a criminal investigation into accounting irregularities at BT Group’s local business services provider BT Italia. According to a report from the Financial Times, Milan prosecutor Fabio De Pasquale says the probe will be focused on allegations of ‘false accounting and embezzlement’. Earlier this week BT Group’s share price plummeted following the revelation that it would look to write down the value of its Italian business by GBP530 million (USD660 million) rather than the GBP145 million it originally anticipated. The group says that ‘inappropriate behaviour’ by staff at the Italian unit could affect its results for the next two years. A number of members of senior management at BT Italia were suspended and have now left the company, with a new CEO being installed from 1 February.

Italy, BT Group (incl. Openreach), BT Italia