Lycamobile has issued a strong rebuttal to allegations about its business practices, as the Labour Party called on the Conservatives to explain what actions it is taking in connection to the allegations its donor faces.
The MVNO has been scrutinised this week after an investigation by BuzzFeed News alleged the Lyca telecoms group deployed three men to drive around in an unmarked people carriers depositing bags of money which could be as much as £1m each week.
Lycamobile issued an emphatic statement rejecting the investigations findings: ‘We deny all allegations and inferences of wrongdoing over the preceding few days and will defend such allegations robustly. We have asked our external lawyers to review the articles and consider all legal options against BuzzFeed.’
Lycamobile are major donors to the Conservative Party which has propelled the story into Westminster. The investigation and its fall out prompted shadow minister Jonathan Ashworth to send a letter to Conservative Party chairman Lord Feldman seeking assurances that the allegations are being treated seriously.
Ashworth also called on the Conservatives to say what conversations had taken place between the party and Lycamobile in relation to the investigation: ‘I was concerned this week to read about the unorthodox business practices of Lycamobile – a major donor to the Conservative Party – and am writing to seek assurances from you that this matter is being treated with the seriousness it deserves.
‘It is clear that serious questions need to be answered on this issue. The Prime Minister himself once said that sunlight was the best disinfectant. With that in mind, please could you explain what checks have been carried in relation to Lycamobile and confirm that you are satisfied that this company is the sort of organisation you are happy to take donations from.
‘Please could you also confirm what conversations have taken place between the party and Lycamobile to ensure that the business practices revealed by Buzzfeed News are legitimate and provide reassurances that no further donations will be accepted from the company until the necessary investigations are completed.’