Investigation at Magyar Telekom unit shows tampering; company takes steps to improve controls
Magyar Telekom on Thursday said an initial report on two suspicious contracts at its units in Montenegro and extended to two additional contracts signed by the parent company shows documents related to the contracts were tampered with or destroyed by employees.
It added that the independent auditors investigating the contracts had also found suspicious contracts at another subsidiary. Magyar Telekom stressed it had taken steps "designed to enhance its internal controls and compliance and governance regime." The announcement reveled that several employees were suspended who later resigned during the investigation.
Suspended employees included those employed by Magyar Telekom's strategic business, one of the heads of the Montenegrin unit TCG. TCG board members were also replaced. The announcement was made just hours before Magyar Telekom shareholders were scheduled to convene for a general meeting, with the hope of approving the company's 2005 financial report, which has been delayed since the spring because of the investigation. Magyar Telekom said in the statement that it could not predict when the investigation would end or what its outcome would be. (Mti-Eco)
ADVERTISEMENT
Number of Liquidations Increasing Rapidly
Varga Meets With Chinese Business Leaders
AutoWallis May Increase Planned Sales Due to Strong Performa...
International Writers Amongst Visitors at PesText Festival
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
.jpg)
