SWEDEN – TELIASONERA AB AND TURKEY – TURKCELL ILETISIM HIZMETLERI AS Countries Involved Kazakhstan, Sweden, Turkey, the US and Uzbekistan
Enforcement Action and Date Sweden: In September 2012, the Swedish public prosecutor started a preliminary investigation into suspicion of aggravated bribery by employees of TeliaSonera with regard to the purchase of a 3G telecom license in Uzbekistan, and, on March 28, 2013, expanded the probe to include TeliaSonera with possible consequences of corporate fines and asset forfeiture.544 US: On April 20, 2011, Turkcell disclosed that it was made aware of allegations of improper payments relating to the operations of Kcell, a mobile telephone company in Kazakhstan, of which it owns a minority share.545
Case Details TeliaSonera: TeliaSonera resulted from a merger of Swedish Telia and Finish Sonera in 2002.546 Since 2007, TeliaSonera has owned Ucell, a small mobile operator in Uzbekistan. In conjunction with the purchase of Ucell, TeliaSonera entered into an agreement with Takilant Limited, to acquire 3G telecom licenses, frequencies and number series, for US$30 million and a 26 per cent ownership interest in Ucell.547 In early 2012, TeliaSonera acquired additional shares in Ucell548 from Takilant for US$220 million.549 On 19 September 2012, Swedish television aired the findings of investigative journalists regarding TeliaSonera’s purchase of a 3G telecom license that Takilant had close ties to Gulnara Karimova, the daughter of the President of Uzbekistan, Islam Karimov.550 Persons interviewed claimed that at least a part of the millions that TeliaSonera had paid for the licence ended up as bribes in the hands of Uzbekistan President Islam Karimov and his family. Swedish prosecutors followed up on the allegations made on TV and started a preliminary investigation of TeliaSonera employees.551 In 544
Reuters, 28 March 2013, “Update 1 – Prosecutors eye fine for Telia in Uzbek probe”, www.reuters.com/article/2013/03/28/teliasonera-uzbek-idUSL5N0CK2MP20130328. 545 Turkcell Iletisim Hizmetleri AS, 20 April 2011, 20-F/A for 12/31/10, Line 3591, www.secinfo.com/d14D5a.q35B1.htm?Find=Kcell&Line=3592#Line3592. 546 Teliasonerahistry.com, “Telia + Sonera = TeliaSonera”, www.teliasonerahistory.com/building-the-company/articlelist/telia-sonera-teliasonera/, the Swedish Government holds 37.3 per cent of its shares, and the Finnish Government 11.7 per cent since it sold a 2 per cent stake in TeliaSonera in March 2012, TeleGeography, 13 August 2013, “Finland to sell more TeliaSonera shares next year”, www.telegeography.com/products/commsupdate/articles/2013/08/13/finland-to-sell-more-teliasonera-shares-nextyear/. 547 Press Release, TeliaSonera, 19 September 2012, “TeliaSomera comments on developments in Uzbekistan”, http://www.teliasonera.com/en/newsroom/press-releases/2012/9/teliasonera-comments-on-developments-inuzbekistan/, For additional information on the acquisition see Ferghana News, 21 September 2012, Maria Yanovskaya, “Gayane Avakyan and TeliaSonera or Swedish Krona for Googoosha”, http://enews.fergananews.com/articles/2781; Ferghana News, 15 October 2012, Maxim Baylis, “Investigation: What happened to TeliaSonera in Uzbekistan?”, http://enews.fergananews.com/articles/2787. 548 indirectly by acquiring shares from TeliaSonera Uzbek Telecom Holding B.V., a Dutch holding company owning 100 per cent of Ucell (OOO Cusco) 549 TeliaSonera, Annual Report 2010, Acquisitions and Divestitures, http://reports.teliasonera.com/2010/sv/AR/ReportoftheDirectors/AcquisitionsandDivestitures.html. 550 Reuters, 26 September 2012, “Swedish prosecutors open probe into TeliaSonera Uzbek deal”, www.reuters.com/article/2012/09/26/us-teliasonera-uzbekistan-idUSBRE88P0XM20120926 551 The probe has been expanded to a third employee in April 2013, Thomson Reuters Foundation, 4 April 2013, “Prosecutors identify third suspect in Telia Uzbek probe”, www.trust.org/trustlaw/news/prosecutors-identify-thirdsuspect-in-telia-uzbek-probe/
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