Deutsche Telekom and its Hungarian subsidiary Magyar Telekom will pay USD 95 million to settle the bribery investigation initiated by the US Securities Exchange Commission (SEC). The companies are accused of bribing politicians in Macedonia and Montenegro with payments of EUR 12.2 million in order to close the mobile phone market to competitors. Related charges were filed against former Magyar executives. Although both parties denied the accusations Magyar agreed to pay USD 59.6 million penalty and enter a two-year deferred prosecution agreement with the Justice Department and USD 31.2 million of disgorgement and interest. Deutsche Telekom will pay USD 4.36 million penalty and two-year nonprosecution agreement with the Justice Department, because records about the payments were not kept properly in the company's financial statements. Magyar said that it put USD 90.8 million aside as a provision to settle with the SEC. Telekom has not commented on the subject yet.
