Last updated at 10:26 24 April 2007

The managing director of GMTV has apologised to viewers who may have paid to enter phone-in

competitions which they had no chance of winning.

Paul Corley said on this morning’s show: "I’d just like to apologise for everything that’s gone on."

BBC1’s Panorama claimed last night that some callers and texters stood no chance of winning as shortlists of potential winners were

finalised "long before" phone lines closed.

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GMTV has said it found "irregularities" in the

system provided by Opera Interactive Technology and terminated its contract with the firm.

Mr Corley blamed "two or three people" at OIT for the problem and added: "If we had known, it would have stopped." He said GMTV would reimburse any viewers who had lost out, but Panorama’s estimate that £40 million had been

fraudulently charged was "a serious exaggeration".

OIT said it had improved its procedures and added that it not had not made money from any past errors.

GMTV workers fear there could be massive jobs cuts as the broadcaster attempts to pay back millions of viewers who have been fleeced out of as much as £40million in the long running TV phone swindle spanning four years.

Workers at the troubled broadcaster said they were preparing to "bear the brunt" of the financial fall out of the scandal, after bosses said they would reimburse viewers who had been swindled out of up to £45,000 a day.

The revelations came as GMTV moved to distance itself from the phone operating company which has been blamed for the scam - Opera Interactive Technology - with the breakfast show announcing it had axed the company from running its competitions.

According to sources, the company is so incensed about the scandal, which surround its weekday phone competition, which offered prizes up to £20,000, it is looking at launching legal action against the phone operator.

Desperately trying to salvage some respectability from the fiasco - bosses at Opera, which have been running GMTV phone-in quizzes between 2003 and 2007, said they had suspended staff involved in the scam and were carrying out their own investigation.

The moves come after GMTV revealed it had suspended its TV phone in competitions, while it carried out a further investigations into the claims.

Presenters including Lorraine Kelly also issued a statement to confused viewers about what was going on.

Corley sent round a message to deflated staff telling them: "It's not the end of the world."

But the 250 staff who work at the broadcaster, whose main shareholder is ITV, fear that being dealt the blow of paying back the money and losing revenues while competitions are suspended, that the company will axe jobs.

A source at the broadcaster said: "It is hard to say how many jobs could go."

She said: "Many here believe that staff will be cut to try and claw back the money - rather than the management falling on their swords over this. Many feel it will be staff who bear the brunt."

They also revealed that GMTV was forced to close down its messageboards because there were so many email from angry viewers over the rip-off.

Millions have been paying £1.80 each to enter a weekday multiple choice quiz which offers prizes of £10,000 and £20,000.

GMTV has been soliciting for calls soon after the beginning of the programme at 6am, but it is claimed was actually picking its shortlist up to 45 minutes before the supposed 9pm deadline, meaning countless entrants were wasting their time and money.

The breakfast broadcaster announced it had terminated its contract with Opera last night, admitting its own inquiries had revealed

"irregularities" in the system the service provider was operating.

The broadcaster's quizzes are suspended until further notice.

According to Panorama, which revealed the scam in last night's show TV's Dirty Secrets, Opera sales director Mark Nuthall learned what was going on in 2003 and sent an email to staff telling them to keep it from GMTV.

The message, which was also copied to boss Gary Corbett, reportedly said: "Make sure they never find out you are picking the winners early."

GMTV said it was "shocked and saddened" by the allegations, which it had first been made aware of when it was approached by Panorama around 10 days ago.

A statement said: "Opera said the allegations were unfounded. However, our own inquiries then showed there were irregularities in the system they were operating.

"We apologise profusely to our viewers, who, understandably, feel let down."

"Our contract with Opera makes it quite clear that competition finalists could only be chosen after lines were closed, giving every viewer an opportunity of winning.

"It is now clear this detailed process was not adhered to by some Opera employees.

GMTV also said it was urgently investigating ways in which it could reimburse viewers who believed they had lost money by entering competitions they could not win.

The company's admission came after the show had earlier told viewers it had instructed City accountants Deloitte to carry out a full, independent review of GMTV and Opera's system and was confident the competitions were being operated fully in accordance with the codes.

Premium rate phone line regulator said it was looking at the claims and had written to Panorama for more information.

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Media regulator Ofcom has already launched its own investigation.

Panorama estimates up to £40 million could have

been lost, although GMTV said it thought the real figure - while substantial - was significantly lower.

Calls were charged at 60p per minute but it is believed that the process of applying for the quizzes takes over two minutes, meaning callers were charged £1.80.

The programme's investigation covers the period up until the end of February.

Opera put out its own statement saying it has removed "relevant staff" had been removed from normal duties - pending further investigation.

But the company defended the claims: "Earlier this year Opera Interactive Technology took positive steps to improve its administration procedures and can confirm that all competition contestant entries throughout the entire competition period are now considered equally and fairly, whether handled directly by Opera Interactive Technology or by its telecommunications partners, using a randomised computer programme.

"This process, implemented as at March 1 2007, has been observed and audited by Deloitte and has been successfully passed as satisfactory and in full compliance with the latest Icstis guidelines.

"Opera has in no way benefited financially from any errors in procedure in the past and will continue to keep its processes in line with any future Ofcom or Icstis guidelines."

It had earlier told the documentary there was "not a shred of truth" in the allegations.