Legal & General workers to blow lid on overcharging by IT supplier

Workers at UK insurance firm Legal & General (L&G) have informed the company about alleged deliberate overcharging by a major supplier.

The details of the allegations, which were made in August last year, could be revealed at the L&G AGM in May.

Workers at L&G originally informed the company’s CEO Tim Breedon of the allegations, by letter, in August last year.

The allegations involve claims that some workers at a major outsourced service supplier have been deliberately mischarging L&G for units of work. This is said to include a practice of charging for extra days of work that have not been done.

Workers could reveal the details of the letter, which has details of the alleged overcharging, including names of some people involved.

In an email to a whistleblower, in response to an update request, the L&G Financial Crime and Information Protection department said it was unaware of the letter sent to L&G CEO in August.

L&G declined to comment.

The group of workers say they have contacted the Financial Services Authority and the Serious Fraud Office. Neither organisation would comment.

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As far as I can remember, L&G's major outsourced IT service suppliers are IBM and TCS.

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@Argiebee: I heard that TCS fired most of the outsourced L&G staff as soon as it could, while IBM allegedly plans to fire 299,000 of its own staff. Hard to care what happens to companies like that, isn't it?

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ArgieBee,

Thought the same, but the article mentions August last year, so it can't be IBM. It has to be TCS, because it is the worst kept secret for a start.

I remember some former L&G workers (promoted now i think) with TCS bragging about how they are 'milking' L&G as some sort of revenge for being outsourced.

There's plenty of stuff on that Broken Brolly message board and I cannot wait for all the paper-work to come out into the open.

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@Matt - yes, TCS got rid of a lot of ex L&G staff (after getting them to knowledge transfer of course). I was told that some were holding onto their jobs but only by delaying training up their replacements or because no suitable replacements could be found in India.

@LG Lad - thanks for the "Broken Brolly" info. There is indeed lots on there.

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@Matt - yes, TCS got rid of a lot of ex L&G staff (after getting them to knowledge transfer of course). I was told that some were holding onto their jobs but only by delaying training up their replacements or because no suitable replacements could be found in India.

@LG Lad - thanks for the "Broken Brolly" info. There is indeed lots on there.

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I think this was the smart thing to do, by several accounts the L&G Board was given ample time to deal with this and investigate.

Instead it looks like they choose to bury it, and then cement over it by having embarrassing alliances with TCS.

I think the AGM timing is perfect, because amidst all of this, L&G's directors must have forgotten that they report to their shareholders.

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I this is different, this is big, and the embarrassment it could cause to L&G and TCS will take a long time to repair I reckon.

Never forget these words from L&G's website: "We encourage an open and honest culture and will not tolerate acts of financial crime including fraud or dishonesty, money laundering, market abuse, bribery and corruption" - Oh Really?

It does all tie up since there's been talk for about a year now that TCS were looking to get rid of a whistleblower for bringing this to their attention, and consulting my L&G contact list he's still here, but I've been hearing all sorts about joining up with the L&G workers to expose what's going on. Who knows!

Well done Karl F. I don't know how you got all the info ahead of everyone else, but well in.

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When you commit fraud, shaft people, try to cover all this up with dirt. Just what do they expect to happen?

I hope the TCS and L&G whistleblowers bring out not just their respective boards and shareholders, but to the doors to the regulators, our politicians and the Law.

Between now and the AGM I hear this thing is going to mad with more members of the press circling!

I've got some information that I want to release anonymously, anyone got an e-mail for Karl?

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My email is karl.flinders@rbi.co.uk

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I must say that I am very disappointed by these developments. As a long-time shareholder and I.F.A. I do find myself sick at what I'm reading.

My friends in the business and I cannot trust a company that resorts to off-shoring its work force where fraud maybe taking place.

But to find out that L&G - we shall see - might be involved in covering things up to preserve the pride of board members makes this one pill far too big to swallow.

I still have friends working for L&G and without pointing them out I have noted their recent dejection at sharing the same floor at what could well be fraudsters.

If these letters I am hearing about surface before the AGM then I shall be reserving my seat with a some rotten tomatoes to throw at the CEO.

What a sad state of affairs and bravo to the whistleblowers of L&G and those at that indian company also by the sounds of things.

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