Late last week, one of the world’s largest integrated telecommunications services operators, VimpelCom, agreed to pay a $835 million settlement to U.S. and Dutch authorities.
The company is accused of paying $114 million to Uzbek president Islam Karimov’s relative, widely believed to be his daughter, Gulnara Karimova. The U.S. Department of Justice (DoJ) claims that VimpelCom used a network of shell companies and phony consulting contracts to funnel bribes to Karimova in exchange for access to Uzbekistan’s telecommunications market.
VimpelCom will pay $167.5 million to the U.S. Securities and Exchange Commission (SEC), $230.1 million to the DoJ, and $397.5 million to the Dutch public prosecution service. U.S. Assistant Attorney General Leslie R. Caldwell, stated that “the FCPA resolution in this case is also one of the most significant coordinated international and multi-agency resolutions in the history of the FCPA, and demonstrates our commitment both to pursuing justice and to bringing about corporate reform.”
The case is part of a wider investigation into alleged corruption involving Gulnara Karimova. Read More...