National Crime Agency Investigates ‘Suspicious Financial Activity’ At Telegraph Media Group

National Crime Agency, London. (Nick Ansell/PA Wire URN:22782715)

National Crime Agency (NCA) is investigating “suspicious financial activity” at the Telegraph Media Group, according to the Times, amid talks of the potential sale of the newspaper.

Senior sources reportedly revealed to the Times that the NCA received a detailed report pointing towards possible financial misconduct at the group.

Discrepancies were reportedly flagged by directors Stephen Welch and Boudewijn Wentink were appointed to the company’s board to restructure when Lloyds Bank seized control from the Barclay family owners, following a £1.2 billion debt dispute.

The two directors have also notified the government of “financial irregularities” coinciding with an ongoing regulatory probe into a bid for the company by Abu Dhabi-backed fund RedBird IMI with ex-CNN head Jeff Zucker pitched to be at the operational helm.

The Barclay family is currently negotiating with Lloyds Bank to transfer ownership to RedBird IMI, a joint venture between RedBird Capital and International Media Investments (IMI) of Abu Dhabi, funded primarily by Sheikh Mansour bin Zayed Al Nahyan, UAE’s vice-president. This itself has raised concerns about maintaining press freedom.

The complex deal involves RedBird IMI repaying the Barclay family’s £1.16 billion debt to Lloyds Bank, and subsequently converting this debt into equity to acquire the media titles that include the 168-year-old Telegraph newspaper and Spectator magazine.

The Times explained that professionals in regulated industries bear the legal responsibility to alert the NCA through suspicious activity reports (SARs) if they suspect dealings in criminal property. The Proceeds of Crime Act extends this duty to unregulated sectors in transactions potentially involving illicit assets.