US authorities are reportedly trying to freeze US$1bn in European assets, in connection with alleged bribery involving Vimpelcom (NYSE:VIP), MTS (NYSE:MBT) and TeliaSonera’s (STO:TLSN) activities in Uzbekistan.
The Justice Department and SEC believe…
US authorities are reportedly trying to freeze US$1bn in European assets, in connection with alleged bribery involving Vimpelcom (NYSE:VIP), MTS (NYSE:MBT) and TeliaSonera’s (STO:TLSN) activities in Uzbekistan.
The Justice Department and SEC believe that the three telcos paid illicit fees to Gulnara Karimova, the daughter of Uzbek president Islam Karimov in a bid to secure mobile licences between 2004 and 2011, reports the Wall Street Journal.
The telcos admitted last year that they were under investigation by various European authorities, and in 2013, TeliaSonera CEO Lars Nyberg resigned over the corruption claims first brought to light in 2012 by Swedish investigative journalists.
Officials in Sweden, Switzerland and the Netherlands have been reviewing the relationship between the telcos and Ms Karimova, who is reportedly believed to own questionable assets across European jurisdictions.
The US prosecutors believe the three companies sold stakes in their Uzbek subsidiaries to local front groups, subsequently buying them back at much higher prices. Vimpelcom, for example, is reportedly accused of selling a 7% stake in Unitel to a company called Takjilant for US$20m in 2007, and then buying it back in 2009 for US$57.5m.
A case brought by US officials could circumvent some of the complexity caused by the European cross-border investigation, according to the report, which also referred to the recent US corruption charges against FIFA officials.
A spokesperson for MTS declined comment, while spokespeople for Vimpelcom and TeliaSonera were not immediately available for comment.
