VimpelCom admits corruption in Uzbekistan

18 February 2016 |


VimpelCom has admitted to having violated anti-corruption laws in its Uzbekistan operations in its latest quarterly report to shareholders.

The operator said it is presently negotiating a settlement with authorities in the US and the Netherlands over allegations that it paid bribes for an operating licence in Uzbekistan. 

"Based on the terms of the prospective settlements with the securities and exchange commission (SEC), US department of Justice (DOJ) and the Netherlands’ Openbaar Ministerie (OM), the company and certain subsidiaries would, among other things, acknowledge certain violations of the US Foreign Corrupt Practices Act and relevant Dutch laws and pay fines and disgorgements to the SEC, DOJ and OM, with those financial penalties within the previously disclosed provision for that purpose," said Vimpelcom.

The telco provisioned $900 million in the third quarter to cover potential liabilities. Telenor, who owns a 33% share of the company, has sought to sell its $2.3 billion stake in the operator. 

"Corruption is unacceptable, and Telenor takes it very seriously that Vimpelcom now seems to acknowledge certain violations of the US Foreign Corrupt Practices Act and relevant Dutch Laws,” said Telenor.