Altice to move away from suppliers involved in Portuguese corruption case

Source: Altice

Altice International and Altice France has said it has taken action to transition away from all suppliers potentially implicated in the Portuguese authorities’ investigation.

Altice co-founder Armando Pereira is currently under investigation by Portuguese police as part of its Operation Picoas investigation into corruption and fraud at the telecom giant’s local operation. He is accused of putting in place a network of suppliers to Altice from which he was able to benefit financially to the tune of millions of euros.

Altice International and Altice France expects it to fully complete the transition by the end of 2023. Both companies revealed that these potentially implicated suppliers accounted for approximately less than 2% of Altice France’s total expenditures and less than 6% of Altice International’s total expenditures, mainly in Portugal.

Along with this, an internal investigation in Portugal and across other jurisdiction was launched to perform a thorough risk assessment in key jurisdictions. According to the group, the investigation sees no material impact is expected on Altice International’s or Altice France’s financial statements.

Following the investigation, Altice France said it has also taken actions to enhance and strengthen several internal control processes, policies and procedures to effectively prevent, detect and mitigate the risk of any future potential individual misconduct, with support by appointed external advisors.

The move sees the further strengthening the compliance team of each operating company under the leadership of the local general counsels. Whistleblowing procedures will be enhanced and made more accessible to all employees and other relevant parties. Additionally, specifically on the procurement process, each operating company will be responsible for its own purchase orders independent of the other operating entities, while a coordination committee including all head of procurement departments will be set up in order to allow the operating entities to continue to benefit from economies of scale.

In a statement, the companies said: “Altice International and Altice France uphold the highest standards of ethics and compliance and do not tolerate inappropriate behavior of any kind. Altice International and Altice France are fully committed to supporting the authorities in their review. Altice International, Altice France and their affiliates will continue to take all necessary steps to protect their interests and rights in all jurisdictions.”