KUALA LUMPUR: TELEKOM MALAYSIA BHD [] said KPMG Corporate Services Sdn Bhd (KPMG) will undertake the investigations and forensic audit to identify employees involved in the alleged improper payments from Alcatel-Lucent S.A.
TM said on Wednesday, Feb 2 the probe by KPMG would be under the supervision of TM's special affairs unit (under the group's internal audit division) which would report to the board audit committee (BAC). It said this was in line with the group's efforts to strengthen its internal control processes.
TM also said the board sub-committee of the BAC was dissolved on Feb 2 since the primary objective to form the panel had been achieved. Hence, the probe and forensic audit would be continued by KPMG.
'In line with good corporate governance practice, the report of the findings to date will be handed over to the Malaysian Anti-Corruption Commission (MACC) by end of February 2011. TM will also continue to cooperate with MACC in their investigations relating to this case,' it said.
To recap, the US Securities and Exchange Commission had charged the Paris-based Alcatel-Lucent with violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to foreign government officials to illicitly win business in Latin America and Asia.
TM had on Dec 29 warned it would take appropriate action against any of its employees, if they had received such payments.
The SEC alleged Alcatel's subsidiaries used consultants who performed little or no legitimate work to funnel more than US$8 million in bribes to government officials in order to obtain or retain lucrative telecommunications contracts and other contracts.
Alcatel agreed to pay more than US$45 million to settle the SEC's charges, and pay an additional US$92 million to settle criminal charges announced today by the US Department of Justice.
The settlement covered activities in several countries in Africa, Latin America, Asia, including Malaysia.
The investigation in Malaysia covers events that occurred between October 2004 and February 2006, and involve alleged improper payments to TM's employees.
TM said on Wednesday, Feb 2 the probe by KPMG would be under the supervision of TM's special affairs unit (under the group's internal audit division) which would report to the board audit committee (BAC). It said this was in line with the group's efforts to strengthen its internal control processes.
TM also said the board sub-committee of the BAC was dissolved on Feb 2 since the primary objective to form the panel had been achieved. Hence, the probe and forensic audit would be continued by KPMG.
'In line with good corporate governance practice, the report of the findings to date will be handed over to the Malaysian Anti-Corruption Commission (MACC) by end of February 2011. TM will also continue to cooperate with MACC in their investigations relating to this case,' it said.
To recap, the US Securities and Exchange Commission had charged the Paris-based Alcatel-Lucent with violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to foreign government officials to illicitly win business in Latin America and Asia.
TM had on Dec 29 warned it would take appropriate action against any of its employees, if they had received such payments.
The SEC alleged Alcatel's subsidiaries used consultants who performed little or no legitimate work to funnel more than US$8 million in bribes to government officials in order to obtain or retain lucrative telecommunications contracts and other contracts.
Alcatel agreed to pay more than US$45 million to settle the SEC's charges, and pay an additional US$92 million to settle criminal charges announced today by the US Department of Justice.
The settlement covered activities in several countries in Africa, Latin America, Asia, including Malaysia.
The investigation in Malaysia covers events that occurred between October 2004 and February 2006, and involve alleged improper payments to TM's employees.
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