A subsidiary of Deutsche Telekom, Magyar Telekom of Hungary issued an statement saying that they have agreed upon a settlement with the USA’s Securities and Exchange Commission (SEC) with regard to an ongoing probe concerning accusations of bribery.
Previously, Magyar Telekom said that signed contracts worth more than $43.97 million that spanned across Montenegro and Macedonia are investigated into; had allegedly broken the U.S. Foreign Corrupt Practices Act (FCPA).
As the company’s announcement came through, the allegations were neither admitted nor denied. The agreement with the SEC was reached in principle; eventually, resulting in a payment in the form of a civil penalty and the payment of disgorgement - the forced giving up of profits obtained by illegal and unethical acts.
The company is understood to be entering the $62.4 million amount as one-off cost into their financial statements in view of the intended settlement.
As the agreement is not yet final, the Company’s Board of Directors, SEC and a U.S. District Court need to approve of it before the settlement is ratified.
The USA’s Department of Justice and the company are understood to be in ongoing discussions with regard to the chances of getting the DOJ’s probe resolved through a settlement facilitated by negotiation.