Israeli-French telecoms and media mogul Patrick Drahi took the unusual step of directly addressing investors and analysts at a quarterly results call for Altice International on Monday in a bid to calm jitters over a corruption probe shaking its Portuguese subsidiary.
The move follows the arrest in Portugal on July 13 of long-time collaborator, Portuguese-French businessman Armando Pereira as part of an investigation into corruption, fiscal fraud and money laundering allegations.
“This was a shock and a big disappointment for me,” Drahi told investors and analysts on Monday’s call.
Related Stories
Breaking News
French Action Picture 'Farang' Defies Riots In Bid To Fill Space Left By Luc Besson's EuropaCorp
News
French Lawmakers Propose New Media Independence Law Amid Growing Debate Over Vincent Bolloré's Influence
“If the suspicions of the Portuguese tax authorities turn out to be true, I will feel betrayed. It means that a small group of individuals hid their actions and profited from some of our acquisitions, to the detriment of the group and my reputation,” he continued.
The address marked Drahi’s first personal comments on the corruption probe as well his first direct address to investors since 2017.
Pereira was a co-founder of the larger Altice group, alongside controlling shareholder Drahi, and held a number of key posts at the telecoms conglomerate including managing director of its French telecom unit SFR.
His arrest followed a three-year investigation by Portugal’s Central Department of Investigation and Criminal Action (DCIAP) of the Public Prosecutor’s Office, in collaboration with the Tax Authority.
Dubbed Operation Picoas, in a reference to the location of Altice’s Portuguese HQ in Lisbon, it alleges that Pereira oversaw corrupt practices involving around 60 companies supplying services to Altice, which will have cost the Portuguese state and Altice millions of euros.
Pereira, who is now under house arrest, has denied the accusations via his lawyer Manuel Magalhaes e Silva.
The corruption probe has sent ripples across the larger Altice group, with Alexandre Fonseca, co-CEO in Europe and chairman of the board at Altice USA, who previously headed Altice Portugal’s operations, resigning within days of Pereira’s arrest.
Altice International, which is one arm of the larger Altice holding, groups telecom companies Portugal’s Meo, Israel’s Hot and the Dominican Republic’s Altice DR as well as online advertising platform Teads.
Drahi also detailed Altice’s actions in response to the corruption allegations in Monday’s call.
They include the commissioning of an independent investigation coordinated by international law firms Ropes & Gray and DLA Piper France as well as “a small number of key legal representatives, managers and employees in Portugal and abroad” being placed on leave while the investigation is conducted.
Drahi added that Altice had also suspended payment to the some 60 supply companies implicated in the Picoas investigation.
The telecoms tycoon and the Altice management team, including some country CEOs, are due to host further investor meetings in London and New York in September 2023.
In the meantime, Drahi is expected to make a further appearance on Tuesday (August 8) at the quarterly results call for Altice France, the French arm of the Altice which encompasses SFR, news channel BFM and Radio RMC.
Must Read Stories
Joseph Fiennes Soccer Play ‘Dear England’ To Transfer To London’s West End
Union Reveals New Health Care Demands; No New Talks Set With AMPTP
‘Barbie’ & ‘Turtles’ Lead Sizzling Weekend As 2023 Take Tops $6 Billion, Up 22% Over 2022
The Magic Behind Apple TV+’s ‘Ted Lasso,’ ‘Silo,’ ‘Foundation’ & More
Read More About:
Source: Read Full Article