Telecoms giant BT has been forced to pay the Ministry of Defence £1.3m in compensation after its staff made sure they met call-answering targets by phoning each other.
A call centre in Kettering was involved in the scam, which involved figures being fiddled to help BT avoid fines for not answering calls quickly enough as part of a £3bn deal to operate the armed forces' telephone system.
BT sacked some of the "small number of staff" involved and paid more than £1m in service payments, the £122,000 cost of investigating the fraud, and the £197,000 cost of the sham calls.
The contract was first awarded to BT in 1997 and extended to July 2012 in 2005.
It centred around providing a phone service to more than 200,000 personnel.
The scam was not spotted immediately because it did not have enough impact on the phone service to spark complaints by users.
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