Telecom Italia: company damaged party, commercial relations with the subjects under investigation already broken off from 2007

02/23/2010 - 07:02 PM

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Telecom Italia has received a request from Consob to issue a press release bearing information regarding the facts relating to the legal measures brought by Preliminary Investigating Magistrate to the Rome Court. 

Telecom Italia, which in this incident is the damaged party, has had access to the legal authority’s decree which was served to its subsidury today, from which it appears that an investigation is under way into, amongst others, TI Sparkle, together with numerous individuals, among them some managers, both from TI Sparkle and Telecom Italia, but always in relation to the role that they covered at the subsidiary in the period referred to.   

In light of the alleged offences, the Public Prosecutor has asked the Preliminary Investigating Magistrate to prohibit TI Sparkle from all business activity, and to appoint an administrative receiver pursuant to Leg. Decree no. 231/2001, charging the firm with administrative responsibility in relation to international criminal organisation and money laundering. A decision regarding the Public Prosecutor's request shall be taken during the council meeting scheduled for March 2, 2010.

This is a widely known matter and already the subject of internal inquiries and audits. In the notes to the FY 2007 consolidated financial statements Telecom Italia stated that Telecom Italia Sparkle had been the subject of investigations concerning alleged VAT fraud by a supplier operating in "premium" telecommunications services. Besides collaborating with the investigating authorities, as a precautionary measure Telecom Italia Sparkle broke off all commercial relations with the subjects under investigation.

 

Milan, 23 February 2010