Manx Telecom has suspended its CFO after he was charged with drug smuggling offences.
Danny Bakhshi becomes the second senior telecoms executive this week to be embroiled in a scandal, after the Chief Executive of IoT vendor Telit took a leave of absence over historic fraud allegations.
Bakhshi, who has been CFO of the operator since December 2015, is facing trial in the Isle of Man after allegedly bringing cannabis over from Amsterdam in July this year.
The former BT, Vodafone and Virgin Media exec pleaded not guilty in his appearance before the deputy high bailiff on Tuesday (8 August).
He will return to court on 3 October, when a date for the trial will be set. The process could take until early 2018 to be resolved.
Bakhshi has been suspended on a precautionary basis during the investigation, with Manx Telecom saying in a statement that it plans to keep the suspension “no longer than is reasonably necessary”.
CEO Gary Lamb will serve as Group CFO on an interim basis.
Earlier this week, Telit CEO Oozi Cats took a leave of absence after it emerged that he may face indictment for a historical fraud offence in the US.
The company, which provides modules, platforms and services to develop IoT solutions, said the offence was unrelated to Telit and predated the company’s establishment in 1997.
The company’s Board has appointed a team of solicitors to independently investigate the matter, which reportedly relates to mortgage fraud.
Yosi Fait, Finance Director and President, will serve as interim CEO while the review is conducted.