C&W chases five ex-staff for £25m fraud
We want our money back
Cable & Wireless is launching legal action to recover £25m allegedly syphoned from its insurance unit. Five ex-employees are named in the action.
Legal action has also been started against another individual outside C&W and five other companies it believes were involved in the fraud.
The company said: "Following an extensive internal investigation commenced last year into the operation of the Group's wholly owned insurance subsidiary Pender Insurance Limited, Cable and Wireless plc and Pender have today (30 March 2004) commenced legal action against five companies and six individuals (of whom five are former employees)."
Pender Insurance was set up in 1990 to provide insurance to the rest of the group. It also took on business from other companies.
C&W believes the current action will not result in financial loss, because from 1 April 2003 Pender stopped taking on new business and began to reduce its liabilities. ®