Russian operator MTS has agreed to pay USD 850 million to settle a case brought by the US over alleged bribery in obtaining licences for MTS Uzbekistan. MTS set aside a provision for the payment already in Q3 2018 and also agreed with the US Department of Justice and SEC to improve its internal controls and compliance checks to prevent future corruption.
The investigation dates back to 2004 and resulted in similar payments by Telia and Vimpelcom over their activities in Uzbekistan. MTS has since exited the market, after pressure from the state.
According to the SEC, MTS bribed an Uzbek official who was related to the former President of Uzbekistan and had influence over the Uzbek telecommunications regulatory authority. During the course of the scheme, MTS made at least USD 420 million in illicit payments for the purpose of obtaining and retaining business.
The agreement with the DOJ and SEC commits MTS to ensuring that its business policies, processes and procedures strictly comply with all relevant anti-corruption legislation, and it will be independently monitored for three years. The company already set up a compliance department in 2012. In the resolution, the DOJ recognized MTS’s ongoing enhancements to its compliance program and internal accounting controls, MTS said.
