- NCA passed information concerning possible financial wrongdoing
- Comes ahead of sale of 168-year-old newspaper to Abu Dhabi-backed investors
- Ofcom and Government also looking into sale amid fears of editorial influence
The Telegraph newspaper group faces a potential probe carried out by the National Crime Agency over a report of ‘suspicious financial activity’.
The NCA has been passed information concerning possible financial wrongdoing at the group ahead of its sale to Abu Dhabi-backed investors, according to The Times, quoting senior company sources.
Ofcom and the Government are also looking into the sale amid fears that the rulers of the United Arab Emirates could wield editorial influence over the 168-year-old British newspaper.
The crime agency declined to comment yesterday but it is understood it has seven days to decide what action, if any, to take as a result of the ‘suspicious activity report’.
A set of independent directors was appointed after the Telegraph group was seized by Lloyds Bank from its owners the Barclay family over a £1.2billion debt.
Ofcom and the Government are also looking into the sale amid fears that the rulers of the United Arab Emirates could wield editorial influence over the 168-year-old British newspaper.
The crime agency declined to comment yesterday but it is understood it has seven days to decide what action, if any, to take as a result of the ‘suspicious activity report’
If they have come across any financial activity that they know or believe to be suspicious they have a statutory duty to report it to the NCA.
Anyone can submit a report, and the NCA does not necessarily have to investigate it.
It is the latest twist in the battle for control of the Daily Telegraph, Sunday Telegraph and The Spectator magazine.
Their ownership was due to be transferred to the Gulf-backed RedBird IMI fund but Culture Secretary Lucy Frazer intervened amid concerns the papers might come under the control of an autocratic foreign state.
The fund is a joint venture between the US private equity firm RedBird and International Media Investments, an Abu Dhabi entity controlled by Manchester City’s owner, Sheikh Mansour bin Zayed bin Sultan al-Nahyan, who is the deputy prime minister of the UAE.
Despite the UAE providing 75 per cent of the funding, RedBird IMI insists it will remain a ‘passive investor’ with no influence over editorial decisions. There have been grave concerns about the sale from readers, MPs and many of the Telegraph’s current and former journalists.
Yesterday the fund defended its takeover by promising ‘total editorial freedom’ for the titles enshrined in a legally-binding deal with the UK Government.
Jeff Zucker, a former president of CNN who is now head of RedBird IMI, said there would be ‘cast iron’ protections including an ‘editorial trust board’ which would oversee the Telegraph’s independence, handle all disputes that arise and approve the appointment of an editor.
He said in a BBC interview: ‘I can guarantee that journalists will be free to roam wherever they want. IMI has guaranteed they will not be involved in any way in the operation of these titles.’
He insisted it was an ‘America-led’ bid, despite three quarters of the funding coming from UAE, and he rejected the notion that a majority stake meant the sheikhs were ‘buying influence and power’.
Mr Zucker said the deal was a straightforward business investment and added: ‘Democracy needs journalism, and today journalism needs investment, and that’s what we’re here to provide.’
But former Conservative leader Sir Iain Duncan Smith told BBC Radio 4’s Today programme: ‘No newspaper title should come under the ownership of a foreign government. I would have the same objections if the French government decided they were going to buy the Telegraph.’
If Ofcom’s findings derail RedBird IMI’s plans, the independent directors who control The Telegraph would relaunch an auction, which previously attracted bidders including the publisher of the Daily Mail and Sir Paul Marshall, co-owner of GB News.
