Romanian telco RCS&RDS indicted in bribery and money laundering case

Romanian telco RCS&RDS indicted in bribery and money laundering case
By bne IntelliNews July 26, 2017

Romania’s National Anticorruption Directorate (DNA) has indicted Romanian telecom operator RCS&RDS for bribery and money laundering and seized two of its assets worth around €3mn, RCS&RDS said on July 25.

In May, while RCS&RDS’s parent company, Digi Communications, was carrying out its IPO on the Bucharest Stock Exchange, the DNA announced it had started an investigation into several current and former members of the management team of RCS&RDS and the former head of the Romanian Professional Football League (LPF), Dumitru Dragomir, on suspicion of corruption.

The DNA has now indicted Integrasoft, one of RCS&RDS’s subsidiaries, for being an accessory to money laundering, while a member of the RCS&RDS management board, Mihai Dinei, was indicted as an accessory to bribery and  money laundering.

The company said it does not expect the measures to interfere with the businesses of Digi Communications, RCS&RDS and any of their subsidiaries in any material manner. The shares of Digi Communications were trading 0.49% down to RON40.8 (€8.9) per share on the Bucharest bourse on July 26, at 3.23 pm local time.

The company’s principal shareholder is Zoltan Teszari who owns 56.93% of the company directly and indirectly.

Digi Communicationms is a leading provider of telecommunication services in Romania and Hungary offering cable and DTH television services, fixed internet and data and fixed-line telephony.

On July 21, the Hungarian subsidiary of Digi Communications, Digi Tavkozlesi es Szolgaltato, has signed an agreement to acquire Hungarian broadband and telephone provider Invitel Tavkozlesi Zrt for €140mn.

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