I'd certainly be wanting the allegations brought out into the open and resolved or the mud will definitely stick to your friend. If he walks and the thieving continues, do you think they're going to ring him and say "whoops, sorry, looks like it wasn't you after all?" No way! He needs to know exactly what he is being accused of and by whom, and if they can't provide that detail, I would be advising them that if the allegations continue, or if my contract was suspended without any proof of wrongdoing on my part, I would be suing them for defamation.
As for verbal contracts, they can be enforced. I went after a job as an editor of a weekly newspaper years ago and was called on the Friday afternoon to say the job was mine and given a starting date. I was at Manfeild that weekend for a Stay Upright course so turned my mobile off while doing the theory session that night. When I turned it on again, there was a message from the woman who had offered me the job, saying they had made a mistake and they couldn't actually afford to employ me! I was (and still am, for this very reason) a member of the union so they contacted her and told her it was a breach of contract and she would have to pay me at least four weeks salary in compensation. Sure, I still didn't have the job, but at least I had the satisfaction of making her pay me for nothing!
Yes, I am pedantic about spelling and grammar so get used to it!
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