Telstra backflips on dealer audit

Telstra backflips on dealer audit

Telstra has denied claims that it is investigating one of its mobile phone reseller chains for fraudulent activity.

In August, at the Telstra Business Transformation Briefing, Telstra productivity director, Hayden Kelly, said that Telstra was undertaking an audit program of Crazy Johns shops.

“That group [Crazy Johns] has identified a number of shops where they don’t think the practices are right and proper,” Kelly said. The first audit took place in Melbourne on August 29, 2003, he said.

“I have a team of people out there working in one of Crazy Johns’ shops, auditing the processes to make sure that both Crazy Johns and Telstra are not being ripped off,” Kelly said.

He told the briefing that Telstra was also in the process of taking a product off the market after it discovered that 70 per cent [$700,000] of its monthly revenue stream was fraudulent.

The comments formed the basis of a report in the Australian Financial Review, which speculated that Telstra was cracking down on the Crazy Johns retail outlets in an attempt to eliminate fraud in its dealer channels.

Telstra's spin machine has since tried to distance itself from Kelly’s comments.

“Crazy Johns is not under any investigation from Telstra,” Telstra media relations manager, Stephen Morrison, said.

Crazy Johns managing director, Brendan Fleiter, also denied Kelly’s claims.

For more on this story, see this week's ARN.

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