Are you sure?

State agency expands investigation at Magyar Telekom

Magyar Telekom said the Hungarian National Bureau of Investigation (NNI) informed the company it had extended the scope of an ongoing investigation into alleged misappropriation of funds to examine possible misuse of personal data of employees.

The NNI launched the criminal investigation into the alleged misappropriation of funds relating to payments made in connection with the company’s ongoing internal investigation into certain contracts entered into by members of the Magyar Telekom Group and related matters, the company said.

“The company cannot predict when the internal investigation or any of the ongoing governmental investigations will be concluded, what the final outcome of those investigations may be, or the impact, if any, they may have on its financial statements or results of operations. Government authorities could seek criminal or civil sanctions, including monetary penalties, against it or its affiliates, as well as additional changes to its business practices and compliance programs,” Magyar Telekom added.

The internal investigation of questionable contracts signed at some of Magyar Telekom's foreign units started in 2005. It cost the company HUF 3.6 billion in H1 2009, up from HUF 3.4 billion in the same period a year earlier. (MTI-Econews)