A FORMER head of Vodafone’s corporate financial services division was involved in the fraudulent requisitioning of €2.3 million worth of services on behalf of the mobile phone firm, it has been alleged in Commercial Court proceedings.
The alleged fraud has been investigated by gardaí since February 2007 but, as there was no indication how long the investigation would take and given the seriousness of what was involved, Vodafone had decided to bring the civil action in an effort to recover the money, Maurice Collins SC, for the company, said.
A forensic accounting had quantified at €2.3 million the losses suffered by Vodafone as a result of the alleged fraud, Mr Justice Peter Kelly noted.
Vodafone claims that Niall Barron, Clonattin Village, Gorey, Co Wexford, allegedly enriched himself by buying services on behalf of Vodafone which were never provided or inadequately provided over a five-year period.
It is claimed he ordered some of the services – for which invoices were not provided – on behalf of a company called Tel-Q Ltd, of which he is the owner and which is registered in the south Pacific island of Vanuatu.
He also allegedly purchased services from Fusion TV Ltd, Elmsborough Rise, Kiltipper Road, Dublin, which traded under the names Universal Sound and Picture, and of a now-dissolved company called Chess Business Consultancy Ltd, Greenogue Business Park, Rathcoole, Dublin.
Vodafone also claims the directors of Fusion and Chess were husband and wife David McGovern and Elaine Dixon, Burrow Manor, Colverstown, Kilcullen, Kildare.
It is claimed they also carried on business under the trading name Consul-Tech, which also allegedly received requisitions from Mr Barron for services not provided.
Vodafone has brought its action against Mr Barron, the couple and Fusion. The case was transferred to the Commercial Court yesterday by Mr Justice Peter Kelly.
It is claimed Fusion, Universal and Chess, with the assistance of Mr Barron, had defrauded Vodafone from 2002 by issuing invoices and being paid for services which were not provided at all or were provided by a different company and/or at an inflated price.
It is alleged that the payments included sums for VAT which were not returned to the Revenue Commissioners and that Tel-Q, Fusion and Chess were used to conceal the fraudulent and improper activities.
Vodafone says the alleged fraud was brought to its attention in February 2007 and the Garda investigation got under way. Mr Barron was summarily dismissed in March that year while Mr McGovern and Ms Dixon allegedly handed over materials to gardaí.
Vodafone also wants damages for conspiracy, fraudulent and/or negligent misrepresentation and breach of contracts.
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