Jan. 26 (Bloomberg) -- Telekom Slovenije Group d.d.’s purchase of units in the Republic of Macedonia, Kosovo, Bosnia- Herzegovina and Slovenia failed to adhere to “good practices” of corporate governance, according to an audit of the deals by a Slovenian unit of Deloitte & Touche LLP.
“We believe the company failed to act in accordance with good corporate practices in the purchase of units in Slovenia and abroad,” state-owned Telekom Slovenije said in a statement today, citing the audit by the Ljubljana-based Deloitte revizija d.o.o. The auditor said the company failed in risk management and estimates 7 million euros ($9.2 million) of damages from the purchases of units in the Balkans.
The audit report will be discussed at a shareholders meeting set for March 7, Telekom Slovenije said.
The Slovenian company expanded in the Balkans in recent years to benefit from increased spending by consumers as economies in the area of former Yugoslavia expanded to catch up with the Western European standards.
Telekom Slovenije acquired the Macedonian mobile operator Cosmofon in March 2009 for 185.6 million euros and later renamed it ONE. Ipko, its mobile-phone and Internet provider unit in Kosovo, was purchased in 2007.
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