The president of TeliaSonera's mobility services unit is to leave his post over allegations of corruption in Uzbekistan.

The Scandinavian operator said Tero Kivisaari would leave his position with immediate effect and take up other duties within the group.

Head of business services Sverker Hannervall has been appointed as Kivisaari's interim replacement.

TeliaSonera cited Kivisaari's role in controversial investments in Uzbekistan as the reason behind his departure.

The company is facing allegations that it paid money to a close friend of Gulnara Karimova, the daughter of Uzbekistan's authoritarian president, in 2007.

A TV investigation claimed that operator intended to "enter into an agreement with Gulnara Karimova's investment team as the local partner".

TeliaSonera's chief executive Lars Nyberg resigned after the allegations came to light in February, to be replaced by John Dennelind.

In April, the operator appointed law firm Norton Rose to conduct a thorough review of “the transactions and agreements made in the past few years and the company’s partners in Eurasia”.

In a statement confirming Kivisaari's departure from his post, TeliaSonera said his involvement in the Uzbek investment had made it impossible for him to act with the "internal and external authority" required to lead the largest area of its business.

Dennelin commented: "The investments in Uzbekistan were carried out in a way not compliant with the business practices TeliaSonera wants to stand for.

"However, the shortcomings were, to a great extent, a consequence of inadequate procedures and controls. Strengthening our governance around these issues is now a key priority.

"We continue to cooperate with the Swedish prosecutor in the ongoing preliminary investigation about the Uzbekistan investments, and await the finalisation of the proceedings."

Read more

MTS in Uzbekistan: the inside story

More News

Wind Tre eyes digital services with Matrixx platform Wind Tre eyes digital services with Matrixx platform Wind Tre is the latest European operator to tap Matrixx Software for its digital commerce platform. More detail
Former Telia CEO Nyberg is one of three indicted over Uzbekistan fraud scandal Former Telia CEO Nyberg is one of three indicted over Uzbekistan fraud scandal The former CEO of Telia and two execs from its Eurasia division have been indicted over the fraud scandal that has cost it $965 million. More detail
Deutsche Telekom and Proximus back enterprise-focused start-ups Deutsche Telekom and Proximus back enterprise-focused start-ups Deutsche Telekom and Proximus are investing in a chatbot and an entrepreneur community as they look to back emerging businesses in their home markets. More detail
Deutsche Telekom dips toe into content production with new French farce Deutsche Telekom dips toe into content production with new French farce Germans "invading" a French village to save it from bankruptcy is the unlikely setting for Deutsche Telekom's first foray into content production. More detail
Telia settles Uzbek corruption case for $965 million, three former employees to be prosecuted Telia settles Uzbek corruption case for $965 million, three former employees to be prosecuted Telia will pay just shy of $1 billion to settle a corruption investigation into its opco in Uzbekistan, as three former employees face further charges from the Swedish Prosecution Authority. More detail
    

@eurocomms