Telenor announced on Thursday it has appointed Deloitte to probe the Norwegian incumbent’s conduct concerning its stake in Vimpelcom and its role in the latter’s investments in Uzbekistan, which are currently subject to multiple corruption investigations.
"Head of forensic services, Arnt Angell will lead the team from Deloitte," Telenor said in a statement, adding that he has "vast legal experience" in the subjects of compliance and anti-corruption.
The review will concentrate on the decisions taken by Telenor-backed members of Vimpelcom’s board in relation to Vimpelcom’s investments in Uzbekistan.
It will also cover Telenor’s governance structure in regard to how it manages its Vimpelcom stake, and how Telenor, as a shareholder, followed-up with Vimpelcom in relation to the Uzbek investments.
Deloitte will also look at related information passed to Telenor’s majority shareholder the Norwegian government, and the Parliamentary Committee for Scrutiny and Constitutional Affairs.
Vimpelcom has been under investigation in Uzbekistan since early 2014. The U.S. Securities and Exchange Commission (SEC) and Department of Justice (DoJ), and the Dutch Public Prosecution Service, are probing its dealings with Takilant, a company it has worked with in the country, including to facilitate the acquisition of spectrum.
The investigation centres on allegations of bribery and corruption at the business.
Last week, Telenor’s chairman Svein Aaser resigned after new evidence in the case – that was not made public – came to light.
Telenor had fresh cause for concern on Tuesday this week when Vimpelcom announced it will make a US$900 million provision in its third quarter results related to the Uzbekistan investigations.
On Thursday, Telenor said Deloitte’s review "will assess facts and identify learning points for future [the] governance and organisation of Telenor’s ownerships. This would cover both the formal governance structure and the practical handling of the ownerships. The review will cover the period from 2005 until this date," Telenor said.
Telenor did not say how long Deloitte’s investigation will take, but confirmed that its conclusions and recommendations will be made public.
