The Algerian Court of Appeal has confirmed an earlier Algerian Court of First Instance judgement against Orascom Telecom Algeria (Djezzy) regarding a AD99bn (US$1.3bn) fine.
On 28 March, the Algerian Court of First Instance decided to impose a…
The Algerian Court of Appeal has confirmed an earlier Algerian Court of First Instance judgement against Orascom Telecom Algeria (Djezzy) regarding a AD99bn (US$1.3bn) fine.
On 28 March, the Algerian Court of First Instance decided to impose a US$1.3bn fine on Djezzy, a subsidiary of Orascom Telecom Holding (OTH), over alleged breaches of foreign exchange regulations in 2010. The case was brought by the Algerian authorities.
At the time, the court had also decided to criminally convict a senior member of Djezzy’s executive team. But, according to an OTH statement published today, the criminal custodial sentence has been suspended.
Local reports have suggested that the executive in question is Djezzy CEO Tamer El Mahdy.
Djezzy stated that “OTA and its senior executive have acted in compliance with the law and OTA is taking the necessary steps to file an appeal with the Algerian Supreme Court. The lodging of the appeal provisionally suspend the judgement.”
Russia’s VimpelCom acquired a majority stake in OTH and Djezzy in April 2011, as part of its merger with Wind Telecom.
However, before the takeover was completed, Algeria announced plans to nationalise Djezzy following a dispute over taxes and fines with OTH.
This year, VimpelCom announced it would sell a majority stake in Djezzy to Algeria, subject to agreement on price. However, the legal dispute is expected to delay the sale.
