Further to the previous announcements dated 29 December 2010, 3 January 2011, 6 January 2011 and 2 February 2011 released by Axiata Group Berhad ("Axiata") and following engagements between Axiata and Bursa Malaysia Berhad, the Board would like to provide additional information on the independent investigation into the allegations made arising from the settlement entered into between Alcatel-Lucent SA ("ALU") and the Department of Justice of the United States of America ("DoJ") and Securities Exchange Commission:-
1.The findings of the investigation do not have any financial or operational impact on Axiata Group. The telecommunications contract mentioned in the settlement and awarded by Celcom Axiata Berhad ("Celcom") to Alcatel-Lucent Malaysia Sdn Bhd ("ALUM") was concluded in 2009.
2. The Board of Directors of Axiata has considered the findings of the investigation and taking into consideration ALU's admission to the DoJ of having made improper payments to secure contracts from Telekom Malaysia Berhad ("TM") which were linked to Celcom, then a wholly-owned subsidiary of TM, has decided for an Axiata Group-wide suspension to be imposed on ALU and its group of companies (which include ALUM) ("ALU Group").
This suspension will include suspension on ALU Group from any invitations to submit any new tenders, entry into new contracts or continuing with any negotiations that are currently being undertaken with any ALU Group member.The suspension will also apply to any consortium, joint-venture or partnership of which any ALU Group member is a party.
Axiata Group will continue to honour all existing contractual obligations which it has agreed to prior to this decision and any proprietary arrangements which Axiata Group considers to be critical to its operations.
The above suspension is effective for a period of 12 months from 18 February 2011 and may be reviewed from time to time subject to ALU Group providing assurances and satisfactory evidence that it has implemented clear and enforceable policies and measures to prevent a recurrence of any improper acts in the future.
3. Further, the Board of Directors of Axiata would like to highlight that the matter under investigation happened prior to the demerger of TM Group. Subsequent to the demerger, the Board and organization structure of Axiata Group have changed and new processes are adopted across the Group. Axiata strives to benchmark its processes against international best practices and as a matter of good practice will continuously review and improve these processes. Constant reminders are issued to its vendors and employees to comply with Axiata's policies and Code of Conduct and Axiata does not tolerate any breach of its policies.
This announcement is dated 23 March 2011.
