News
Telco agrees to oversight by an independent compliance monitor; Unitel business pleads guilty wih DOJ.
Vimpelcom on Thursday disclosed that the settlements it has reached with U.S. and Dutch authorities following their investigations of its conduct in Uzbekistan will cost it US$795 million.
The Russian-owned operator earlier in the week disclosed that it had reached agreement with the Securities and Exchange Commission, the U.S. Department of Justice, and the Dutch Public Prosecution Service, or Openbaar Ministerie, but did not divulge the value of the settlement.
Vimpelcom has been under investigation for corruption in Uzbekistan for the best part of two years, the probes focusing on its mobile operation in the country and links with an entity known as Takilant, through which it acquired spectrum in the country. Its settlement with the three authorities includes the admission of certain violations of the U.S. Foreign Corrupt Practices Act and relevant Dutch laws.
Vimpelcom CEO Jean-Yves Charlier, who took the top job midway through the probe, described the whole process as "a very challenging experience" for the telco.
"The wrongdoing, which we deeply regret, is unacceptable," Charlier said. "We have taken, and will continue to take, strong measures to embed a culture of integrity across the group."
Those measures include strengthening the telco’s internal controls and compliance programme and replacing many top executives. In addition to naming a new CEO, Vimpelcom has also welcomed a new CFO, group general counsel, chief performance officer and chief compliance officer in recent months.
As well as the $795 million in fines, Vimpelcom has agreed to a deferred prosecution agreement with the DOJ, a consent agreement with the SEC and a settlement agreement with Openbaar Ministerie. Unitel, its operation in Uzbekistan, has entered a guilty plea with the DOJ.
Vimpelcom has also agreed to oversight across its business by an independent compliance monitor.
The telco said that its cooperation with the investigation and the upgrades to its compliance programme were recognised by the authorities as part of the settlements.
