Russia’s largest mobile operator, MTS, has announced Uzbek authorities have illegally detained managers of its local unit, MTS-Uzbekistan, as part of their investigation of its financial and operational activities.
MTS claims the authority’s actions…
Russia’s largest mobile operator, MTS, has announced Uzbek authorities have illegally detained managers of its local unit, MTS-Uzbekistan, as part of their investigation of its financial and operational activities.
MTS claims the authority’s actions violate local regulations and could “lead to a cessation of business activity”.
The operator said it has received official documents from the Prosecutor General’s Office (PGO) relating to tax claims against its local unit totalling about US$1.27m.
“[I]n conjunction with audits taking place throughout the various subsidiaries of [MTS-Uzbekistan], authorities are seizing internal documents, interrogating employees and illegal (sic) detaining management in violation of procedural norms,” the company said in a statement.
Among those detained are MTS-Uzbekistan acting general director Radik Dautov (a Russian citizen) and CFO Temirmalik Alimov.
“In the company’s opinion, the detained managers are being pressured by law enforcement officials with no grounds and for reasons unknown to the company,” MTS said.
The operator has appealed to the republic to prevent the PGO from “applying unjustified pre-trial restrictions” to MTS-Uzbekistan employees and to ensure authorities conduct activities in a legal and fair manner.
MTS claims its local unit has always adhered to regulations, adding that it is willing to assist the authorities in their investigations.
Earlier this week, local and international media reported Uzbek’s State Communications Inspectorate warned it may suspend or terminate MTS-Uzbekistan’s operating licence, citing poor-quality service. The authority also reportedly contended MTS-Uzbekistan, which had about 9.5 million customers at the end of the first quarter, does not have proper authorisation to use all 48 towers that transmit its signals across the country.
MTS-Uzbekistan was reportedly already subject to government investigations over fraud allegations. The Moscow Times recently cited local media as saying company director Bekhzod Akhmedov has fled the country pending the outcome of the investigations.
