Mobile TeleSystems (MTS) has received requests for documents relating to its Uzbek operations from the US’ Securities and Exchange Commission (SEC).
In a disclosure in its Q4 results, Russia’s largest mobile operator said that it had received a…
Mobile TeleSystems (MTS) has received requests for documents relating to its Uzbek operations from the US’ Securities and Exchange Commission (SEC).
In a disclosure in its Q4 results, Russia’s largest mobile operator said that it had received a “voluntary request” for information “regarding investigations into the activities of unaffiliated parties” in Uzbekistan.
The SEC is currently investigating TeliaSonera and VimpelCom.
Yesterday it was revealed that the SEC and US Department of Justice (DoJ) were investigating TeliaSonera’s operations in Uzbekistan.
TeliaSonera said the US authorities’ investigations relate to its acquisition of 3G licences in Uzbekistan it secured in 2007.
Last week VimpelCom confirmed that it was under investigation by the SEC and Dutch authorities over its operations in Uzbekistan. Telenor, one of VimpelCom’s main shareholders, has also been asked to provide information in relation to VimpelCom’s involvement.
In August 2012 authorities in Uzbekistan suspended MTS’ local unit’s licenses and accused it of evading taxes. Some company managers were jailed in the context. Last December Uzbek authorities transferred the assets of the local unit, Uzdunrobita (MTS Uzbekistan), to state-owned incumbent Uzbektelecom.
Uzdunrobita was forced to file for voluntary bankruptcy in January 2013 after local courts ordered it to pay US$600m in fines, and then last April an Uzbek commercial court declared Uzdunrobita bankrupt and begun liquidation procedures.
Local authorities held two auctions in July to try to sell the company’s assets but received no bids, hence why its assets were transferred to Uzbektelecom. The incumbent has custody of the assets for safekeeping, but not the right to make use of them.
