May 17 (SeeNews) - Romania's anti-corruption body DNA has launched an investigation of the CEO and several managers of Digi Communications [BSE:DIGI] over suspected bribery and money laundering, the company said on Wednesday.
DNA has already notified Digi on May 5 of the start of criminal investigations of several senior management members in connection to a contract of association concluded in 2009 between its majority owned Romanian telecommunications group RCS&RDS and Bodu SRL.
The owner of Bodu SRL is Dumitru Dragomir, a former Romanian professional football league chief, who is suspected of receiving a bribe in exchange of granting Digi the exclusive television rights over some matches.
The CEO of Digi Communications and of RCS & RDS, Serghei Bulgac, has been notified by the DNA that he is a suspect in this investigation in relation to the offence of money laundering, Digi said in a statement submitted to the Bucharest Stock Exchange, BVB, on Wednesday.
"The possibility of this happening in the course of DNA’s investigation was anticipated and disclosed in the Prospectus. The Company
continues to fully cooperate with the investigation and believes that RCS & RDS S.A., as well as individuals named as suspects in the investigation have acted appropriately and in compliance with the law. The Company does not currently expect the investigation to interfere with its daily operations in any material manner," Digi added.
Digi listed on the BVB on Tuesday following a record IPO of 944 mln lei ($229 million/207 million euro), selling 25.6% of its shares.
The intention of listing was announced on April 11, when the shareholders also decided to change the name of the company to Digi Communications N.V from Cable Communications Systems (CCS). Serghei Bulgac, CEO of RCS&RDS, took over as CEO of Digi Communications N.V. as well.
RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994, and Romanian Data Systems (RDS) founded in 1998.
Digi Communications indirectly operates telecommunications groups in Hungary, Spain and Italy through RCS&RDS.
Digi's shares were traded 2.67% lower at 40.1 lei as at 1435 CET on Wednesday on the BVB.
(1 euro=4.5505 lei)