Lycamobile accused of ‘deeply suspicious’ financial practices

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Online news company BuzzFeed claims five month investigation shows O2 MVNO depositing rucksacks filled with hundreds of thousands of pounds across London

Lycamobile has been accused of depositing “hundreds of thousands of pounds” in rucksacks at post offices across London every day, raising questions about the MVNO’s financial practices.

A report from Buzzfeed News claims that Lyca employees have been driving round in unmarked people carriers, dropping off bags of money that have totalled more than £1 million on a weekly basis,

Buzzfeed claimed that a five month investigation revealed the cash practices, which legal and financial experts said they found “deeply suspicious”.

It comes as auditor KPMG unearthed almost £46 million of previously undeclared revenue earlier this year, and claimed it was impossible to tell whether “adequate accounting records” had been kept by the MVNO.

The report also claimed authorities in Sri Lanka are probing a key Lycamobile holding company as part of an international investigation into former Sri Lankan president Mahinda Rajapaksa.

The ethnic MVNO recently renewed its multi-year wholesale agreement with O2, extending a relationship that has been in place since 2010.

Lycamobile also has close links with the Conservative party and is one of its biggest corporate sponsors, donating more than £1.3 million to the Tories since David Cameron came to power. This includes £500,000 in donations this year alone.

Mobile News is awaiting comment from Lycamobile.

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