Feeds

Deutsche Telekom CEO questioned over bribery claims

Company accused of oiling regulatory wheels

Next gen security for virtualised datacentres

German prosecutors searched the home of Deutsche Telekom CEO Rene Obermann in August, it has emerged, and have questioned staff about alleged bribes paid in the form of dividends to stifle Macedonian competition.

The investigation was kicked off in 2007 by the US Securities and Exchange Commission, which were tipped off when PwC refused to sign off accounts for a company called Magyar Telekom, having discovered what it considered dubious payments. An internal investigation led to Macedonia, and Makedonski Telekom, of which Magyar Telekom owns 51 per cent. Deutsche Telekom, in turn, owns almost 60 per cent of Magyar Telecom.

The arrangement is alleged to have been thrashed out in 2005, during a meeting between Obermann and the chief executive of Makedonski Telekom, with the intention of bribing regulators to forestall competitors, the BBC reports. The company and Obermann have denied any wrong doing.

During the internal investigation Magyar suspended a handful of staff, who have since resigned, but the US investigation is ongoing. That investigation led to the German prosecutor being asked to assist, and thus to the homes of several Deutsche Telekom employees being searched.

It would be a near-omniscient CEO who was aware of underhand practices carried out by a handful of employees at the subsidiary of a subsidiary, and given that VIP MKD launched a GSM service in Macedonia two years later any bribes that were offered obviously didn't work.

But having the rozzers wandering around one's home is unpleasant at the best of times, even if one happens to be innocent. ®

Boost IT visibility and business value

More from The Register

next story
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.