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Hungarian investigators end Magyar Telekom probe

Magyar Telekom on Monday said the Hungarian National Bureau of Investigation (NNI) ended an investigation related to an internal probe at the company.

In a decision dated March 1, the NNI said it terminated its criminal investigation of alleged misappropriation of funds relating to payments made in connection with an independent internal investigation of contracts entered into by Magyar Telekom group members because "it could not be established that criminal acts had been committed and further pursuing the investigation was not expected to produce any result."

The internal investigation was of questionable contracts signed at Magyar Telekom's units in Macedonia and Montenegro years earlier.

Magyar Telekom noted that authorities of the governments of Hungary, Macedonia, Montenegro and the United States are still investigating the matter and noted it is cooperating in the investigations.

"Governmental authorities could seek criminal or civil sanctions, including monetary penalties and/or disgorgement, against the company or its affiliates, which could have a material effect on the company’s financial position, results of operations or cash flows, as well as require additional changes to its business practices and compliance programs," Magyar Telekom said.

"The company cannot predict or estimate when any of these governmental investigations will be concluded, what the final outcome of these investigations may be, or the impact, if any, they may have on the company’s financial statements or results of operations," it added.