Tory donor’s Lycamobile sees boss resignations over accounting issues.

TLDR:

Key Points:

• The chief executive and head of finance at Lycamobile have resigned amid accounting problems
• The company is facing a ruling in a multimillion-pound VAT dispute with HMRC

Article Summary:

The mobile network owned by former Tory donor, Lycamobile, has seen its chief executive and chief financial officer leave the company as it deals with accounting issues. Auditors refused to sign off on the company’s accounts due to personal loans handed to the founder. The company has set aside funds for potential fines in a VAT dispute with HMRC.

Richard Schäfer, who served as CEO, left the business last month after overseeing a period of growth. Nikos Paraskevopoulos, the CFO, is also no longer in his role. Lycamobile is currently short on leadership at a crucial time.

The company has faced controversy in the past, including convictions for VAT fraud in its French business. Despite financial losses in recent years, bosses remain committed to the company and future ventures.