Crossroads Asia

Telecom Giant Nears Settlements on Massive Uzbek Corruption Probe

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Crossroads Asia

Telecom Giant Nears Settlements on Massive Uzbek Corruption Probe

VimpelCom says that it would “acknowledge certain violations” if the settlements are finalized.

Telecom Giant Nears Settlements on Massive Uzbek Corruption Probe
Credit: Image via shutterstock.com

VimpelCom’s massive corruption scandal might be winding to a conclusion. The company says it has reached prospective settlements with a trio of agencies currently probing its dealings in the Uzbek telecom market. VimpelCom–Amsterdam-based, Bermuda-incorporated–is a large telecommunications company with dealings in Russia, Ukraine, Italy, and elsewhere. It is Russia’s third-largest wireless provider. Russian billionaire Mikhail Fridman owns a controlling stake, just under 48 percent, through the investment company which he heads.

In an end of the year report to shareholders, released on February 17, VimpelCom says it has reached prospective settlements with the U.S. Department of Justice (DOJ), the U.S. Securities and Exchange Commission (SEC) and the Dutch Public Prosecution Service (OM). Under the settlements, should they be approved and finalized, VimpelCom would “acknowledge certain violations of the U.S. Foreign Corrupt Practices Act and relevant Dutch laws and pay fines and disgorgements to the SEC, DOJ and OM, with those financial penalties within the previously disclosed provision for that purpose.”

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