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BT pays out £1.3m in phone fiddle

Updated on 30 October 2008

Source PA News

BT has been forced to pay the Ministry of Defence £1.3 million in compensation after its staff made sure they met call-answering targets by phoning each other, it has emerged.

They fiddled the figures to help the telecoms giant avoid fines for not answering calls quickly enough as part of a £3 billion-plus Private Finance Initiative (PFI) deal to operate the armed forces' telephone system.

The scam was exposed in a report by public spending watchdog The Audit Commission, which said it showed the need for better monitoring of the way such projects are being run.

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