Telia Company announced its decision to pay $965 million to settle corruption related investigations regarding historical transactions in Uzbekistan.
The huge penalty follows Telia Company’s corrupt payment of $330 million as part of its entry into Uzbekistan telecom market in 2007.
There may be more financial penalty on Telia because the Swedish prosecutor is still conducting its investigation into individuals and Telia Company said it may be subject to disgorgement proceedings resulting from that investigation.
U.S. Department of Justice (DOJ), Securities and Exchange Commission (SEC) and the Dutch Public Prosecution Service concluded that Telia Company’s corrupt payment of approximately $330 million was in violation of the FCPA (Foreign Corrupt Practices Act).
“The resolution and related financial sanction that we announce today is a painful reminder of what happens if we don’t,” said Telia Company’s CEO Johan Dennelind.
Telia will pay fines and disgorgements to the SEC, DOJ and OM in an aggregate amount of $965 million.
The U.S. and Dutch authorities in March 2014 informed Telia about their investigation into Telia’s historical transactions in Uzbekistan and its dealings with Takilant. Telia Company said Takilant was its its local partner when the company entered the Uzbekistan telecom market in 2007.
Telia did not reveal the purpose of the corrupt payment and the number of people involved in the corruption. Since 2012, a Swedish prosecutor has separately investigated the transactions as well.
The multi-million settlement announced today relates to the question of the Telia Company’s responsibility for its previous wrongdoings and not about individuals involved in the curruption.
