The independent directors appointed to oversee the sale of The Daily Telegraph have been warned that the removal of the newspaper’s two most senior executives breached a government order – and that any subsequent transgression could result in a multimillion pound fine.
Sky News has learned that the Department for Culture, Media and Sport (DCMS) last week wrote to Goodwin Procter, the law firm acting for the independent board members, to say that Lucy Frazer, the culture secretary, had concluded that recent management changes at the broadsheet publisher had contravened a requirement that she must consent to the removal and appointment of Telegraph bosses.
According to sources familiar with the letter’s contents, DCMS officials said that Ms Frazer had decided not to pursue further action over the breaches, but warned that “any further breaches may lead to enforcement action, including the imposition of a penalty… [which] may be up to 5% of the total worldwide turnover of the enterprises owned or controlled by the person on whom it is imposed”.
Results for the financial year ending 31 December 2022 showed that Telegraph Media Group recorded a turnover of just over £254m – meaning that a maximum fine levied on that basis alone could amount to over £12.5m.
The letter was sent just over a month after Anna Jones, a former Hearst UK executive, was appointed to replace Nick Hugh as TMG’s CEO.
Cormac O’Shea, the TMG finance chief, left the company just weeks earlier.
Ms Jones’s appointment also constituted a breach of the government’s Pre-Emptive Action Order, imposed last autumn, because the directors had not sought Ms Frazer’s prior approval, the letter is understood to have added.
A source close to the company said they believed that the departures of Mr Hugh and Mr O’Shea were part of the “ordinary course of business”, and were therefore excluded from the original order.
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A subsequent order issued by Ms Frazer following the executives’ departures was amended to remove the “ordinary course of business” clause, the source said.
Image: Culture secretary Lucy Frazer MP
The culture secretary’s latest intervention is the latest twist in a convoluted process that will determine the future ownership of two of Britain’s most influential newspapers.
Ofcom and the Competition and Markets Authority have been given a deadline of next Monday by Ms Frazer to report to her on whether they believe a takeover of the Telegraph titles by RedBird IMI, a state-backed Abu Dhabi investment vehicle, would impinge press freedom.
The £600m deal is being vehemently opposed by Telegraph journalists and Conservative politicians from both houses of parliament.
RedBird IMI is minority-owned by RedBird, a US media investor headed by former CNN president Jeff Zucker, and majority-owned by IMI, which is funded by Sheikh Mansour bin Zayed Al Nahyan, the ultimate owner of Manchester City Football Club.
It has sought to defuse controversy over the deal by offering legally binding assurances over editorial freedom, and in January restructured its bid to incorporate a new UK holding company that would own the Telegraph titles and Spectator magazine.
The new entity has the same ownership structure as the earlier vehicle, according to people close to the situation, being 75% owned by IMI and 25%-owned by RedBird.
A spokesperson for RedBird IMI said at the time of its announcement: “This change was made in order to clarify the point that IMI is a passive investor in the company that will own the Telegraph and as such will have no management or editorial involvement whatsoever in the title.”
An initial public interest intervention notice (PIIN) was issued by Ms Frazer late last year which subjected a prospective debt-for-equity swap handing RedBird IMI ownership of the titles to scrutiny by competition and media regulators.
Most observers expect the culture secretary to refer the deal to a Phase 2 investigation by the CMA, which would delay its completion by months – and could lead to it being blocked altogether.
The takeover is viewed as especially sensitive because of its proximity to a UK general election in which the Tories are likely to be at long odds to win an outright majority.
The independent directors of the Telegraph’s holding company were parachuted in by Lloyds Banking Group last year after the lender seized control of the newspapers from their long-standing owners, the Barclay family.
An auction of the titles followed, drawing interest from the Daily Mail proprietor Lord Rothermere and the GB News shareholder Sir Paul Marshall.
However, the sale process was pre-empted by RedBird IMI repaying £1.16bn of loans owed by the Barclays to Lloyds, with £600m used to purchase a call option to buy the newspapers and the remainder as a loan secured against other family assets, including the online retailer Very Group.
A spokesman for the independent directors said: “It is the fiduciary duty of the independent directors to act in the best interests of the Telegraph Media Group and we will continue to do so”.
The independent directors are led by Mike McTighe, a company turnaround veteran, with the others being Stephen Welch and Boudewijn Wentink, who also have experience of corporate restructurings.
Under the terms of the public interest intervention notice (PIIN) issued by Ms Frazer, RedBird IMI is prohibited from exerting any influence over the titles while investigations by the competition and media regulators are ongoing.
Victims of child sexual exploitation are “not explicitly within the scope” of the Violence Against Women and Girls (VAWG) strategy being drafted by the government, Sky News can reveal.
Child Sexual Abuse and Exploitation (CSEA) is a form of child abuse, described by police as a “critical threat” to women and girls.
It includes crimes such as grooming, and can involve both physical contact, such as rape, or non-physical – like forcing children to look at sexual images.
Sky News has been shown an internal Home Office document presented to various stakeholders in the sector.
Image: Screenshot detailing strategy
It’s titled “Scope of the Strategy… Our draft definition of VAWG”, and says that while it recognises “links” between VAWG and child sexual exploitation, it is not “explicitly within the scope of the strategy”.
“VAWG is Violence Against Women and Girls. If you take child sexual abuse out of it, where are the girls?” Poppy Eyre told Sky News.
Poppy was sexually abused and raped by her grandfather when she was four.
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It wasn’t until she was 11, after a PHSE lesson on abuse at school, that she understood the enormity of what had happened.
“I remember very vividly when the police came round and told me… this is what we’re charging him with,” said Poppy.
“We’re charging him with sexual abuse and rape. And I remember being like, I had no idea that’s what it was, but I know that’s really bad.”
Image: Poppy Eyre was sexually abused and raped by her grandfather when she was four
Poppy’s grandfather was convicted and died in prison.
She questions how authorities would police crime if child sexual abuse is excluded from an umbrella strategy to tackle violence against women and girls.
“Are they holding child sexual abuse at the same level of importance as they are with violence against women? You’d hope so, but potentially not, because it doesn’t need to be in the figures”, she said.
Image: ‘Are they holding child sexual abuse at the same level of importance?’ asks Poppy
The government has pledged to halve VAWG within a decade, by 2035.
“If the government are measuring themselves against halving violence against women and girls – if they’re not looking at the scale of child sexual abuse and child sexual exploitation within that – that will mean we are failing many young victims of abuse,” said Andrea Simon, director of campaign group End Violence Against Women.
The Centre of Expertise on Child Sexual Abuse, which is funded by the Home Office, estimates 500,000 children in England and Wales are sexually abused every year.
‘Danger’ of having separate plan
Rape Crisis told Sky News that “for any strategy to be effective” it “must include all forms of gender-based violence against all women and girls”, suggesting there is a “danger” in having a separate plan for child sexual abuse.
Its chief executive, Ciara Bergman, said it could create a “problematic and potentially very unhelpful” distinction between victims of domestic abuse, expected to be covered by the strategy, and child sexual abuse.
“Some perpetrators of domestic abuse also sexually abuse their children,” she told Sky News.
The government insists the strategy will include action to tackle child sexual abuse, but says it also plans to create a distinctive programme to address its specific crimes.
Image: Poppy’s mother Miranda Eyre says she’s ‘speechless’ and ‘angry’ over the government’s approach
“Sexual abuse is violence against a child,” said Poppy’s mother, Miranda Eyre, who now works as a counsellor specialising in trauma.
“It is violence against girls… and you can’t separate it out,” she said. “I’m speechless to be honest… it does make me quite angry.”
A Home Office spokesperson told Sky News it is “working tirelessly to tackle the scourges of violence against women and girls and child sexual abuse”.
“These issues are complex and run deep within the fabric of society,” they added.
“The government wholly recognises that they overlap. But it also recognises that concerted action is needed to tackle child sexual abuse which is why we have set out a range of actions… and why we are launching a national inquiry into grooming gangs.”
A British veteran has spoken about how he witnessed Japan’s wartime surrender up close as a 20-year-old sailor.
Reg Draper was off Japan’s coast on the HMS Duke of York when the captain announced the war was ending.
Recalling that moment – 80 years ago today – he said cheers went up from the battleship’s crew.
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Why is it important to mark VJ Day?
Mr Draper saw the Japanese sign the agreement on USS Missouri when he went on board to help his friend, who was the ship’s photographer.
“All the ships mustered in Tokyo Bay with the USS Missouri, which was the American ship, and it was on the Missouri where they signed the peace treaty,” the 100-year-old recalled.
“Then we all came back down to Australia and we went and celebrated – we went down to Tasmania and everybody had four days leave in Hobart.
“Everybody wanted to take us to their home and there were a couple of dances in the dance hall.”
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Image: Mr Draper still has a photo showing the peace deal being signed. Pic: Royal British Legion/PA
Image: Mr Draper got a letter recognising his presence at the surrender. Pic: Royal British Legion/PA
Mr Draper, who grew up in Leeds, was a stores assistant on the Duke of York after volunteering on his 18th birthday.
His duties included rationing out the rum so all the sailors could get their 11am hit. He said senior crew got theirs neat while everyone else had theirs watered down.
He also recalled being clattered by Prince Philip after the Queen’s future husband, who was on a destroyer escorting his ship, came aboard.
Image: A view looking out over the HMS Duke of York. Pic: AP
Image: Mr Draper met Prince Philip again in the 70s – but the hockey wasn’t mentioned. Pic: Royal British Legion/PA
“We used to have deck hockey on the quarter deck and it was murder playing deck hockey,” said Mr Draper.
“He [Philip] knocked me over once and then the next time he came round he hit me, there’s still a mark there, he gave me a clout with his hockey stick.
“He came to see me just to see how I was. They just put a stitch in and it was alright.”
The pair met again in 1972 when Mr Draper was training sea cadets for the Duke of Edinburgh awards.
He said Philip noticed his medals and recalled escorting the ship – but didn’t mention the hockey game.
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Mr Draper’s time on the Duke of York included Arctic convoys to deliver supplies to Russia and sailing to Sydney, Australia, in 1945 before joining the East Indies Fleet.
“We started going up to the islands, kicking the Japanese out of the islands as we went,” he recalled.
Japan surrendered after the US dropped two nuclear bombs on Hiroshima and Nagasaki, on 6 and 9 August.
Image: Mr Draper now lives in Elton in Cheshire. Pic: PA
Mr Draper turned 21 on the trip back to Europe and said 2,000 people were on board as they had picked up prisoners of war.
He went on to become an insurance salesman and said he’s planning to watch today’s 80th anniversary commemorations from his home in Elton, Cheshire.
The King released an audio message in which he said the sacrifices of VJ Day veterans should “never be forgotten”.
He described how the heroic actions of those sent to fight in the Far East, as well as the brutal treatment of civilians, “reminds us that war’s true cost extends beyond battlefields, touching every aspect of life”.
The King will issue a warning that the sacrifices of the VJ Day veterans should “never be forgotten” as they “gave us more than freedom; they left us the example of how it can and must be protected”.
In an audio message, due to be released on Friday morning to mark 80 years since the end of the Second World War in the Far East, King Charles will describe how the heroic actions of those sent to fight there and the brutal treatment of civilians “reminds us that war’s true cost extends beyond battlefields, touching every aspect of life”.
In what could be interpreted as him alluding to current world events and conflicts, he will emphasise the importance of international collaboration, saying that victory in 1945 demonstrated that “in times of war and in times of peace, the greatest weapons of all are not the arms you bear but the arms you link”.
Image: Pic: PA
The six-minute audio message to the Nation, Realms and Commonwealth to mark VJ Day, echoes the audio broadcast made by his grandfather, King George VI, which the King will reference.
He recorded it in the Morning Room at Clarence House earlier this month.
Victory over Japan (VJ Day) was declared on 15 August 1945, following Imperial Japan’s surrender to Allied Forces.
With Victory in Europe (VE Day) declared in May 1945, some have felt that historically VJ Day has been overlooked, undervaluing the sacrifices of those who continued to fight on for another three months.
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In his message, the King will say that the service and sacrifice of those who fought and died in the Pacific and Far East “shall never be forgotten”.
He will also refer to the experience endured by prisoners of war and to the innocent civilians of occupied lands in the region.
King Charles and Queen Camilla will also publicly mark the anniversary by attending a national service of remembrance at the National Memorial Arboretum in Staffordshire.
The service, run in partnership with the Royal British Legion, will be attended by Burma Star recipients, a veteran of the British Indian Army and those involved in the Battles of Kohima and Imphal.
Prisoners of war held across the region and veterans stationed in the UK or Commonwealth countries who contributed to the war effort will also attend. A two-minute national silence will be held at midday.