Telenor president and CEO Jon Fredrik Baksaas has stepped down from the supervisory board of Russia-focused VimpelCom, as investigations into the latter’s alleged corruption in Uzbekistan continue.
The Norwegian telco, which has a 33% economic…
Telenor president and CEO Jon Fredrik Baksaas has stepped down from the supervisory board of Russia-focused VimpelCom, as investigations into the latter’s alleged corruption in Uzbekistan continue.
The Norwegian telco, which has a 33% economic interest in VimpelCom and 43% of the voting rights, said in a statement today that the move is aimed at eliminating any potential conflict of interest in relation to the investigations.
“Corruption allegations and speculations are serious and Telenor as a minority owner will continue to take necessary actions to protect its interests.”
Baksaas, who joined the VimpelCom supervisory board in 2010, said he is stepping down to focus solely on protecting Telenor’s position.
“Telenor has zero tolerance for corruption. As an owner in VimpelCom, we will assist the ongoing investigations.”
A Telenor spokesperson confirmed in March that the company had been contacted by Norwegian authorities in relation to an investigation by Dutch authorities at VimpelCom’s Amsterdam headquarters.
Around the same time, VimpelCom’s largest shareholder, Russia’s Alfa Group, confirmed that it was under investigation by the US Securities and Exchange Commission and Dutch authorities over its operations in Uzbekistan.
Last month, Telenor board chairman Svein Aaser reportedly met with Norwegian industry minister Monica Maeland to discuss VimpelCom’s operations in Uzbekistan. He told reporters afterward that Telenor would like to sell its VimpelCom shares, but the current share price was too low.
In today’s statement, Aaser noted that the Telenor board has appointed a special committee of board members to closely monitor developments at VimpelCom.
