The Altice Group is looking at some serious allegations and as a result, the company is shaking up its leadership roles. The decision was made after Co-Founder Armando Pereira spent the weekend in custody due to suspicions of money laundering and fiscal fraud. Altice Portugal is under investigation for corruption alongside 90 other businesses and homes searched last week.
“The suspicion which prompted the probes indicates that the process of decision-making within Altice was biased in terms of how contracts were obtained. These practices caused prejudice to companies that are part of Altice as well as their competitors,” said Portugal’s Central Department of Criminal Investigation and Prosecution as reported by Variety.
In response, Co-CEO Alexandre Fonseca has put himself on suspension from all duties until the matter is resolved. He is also being investigated.
“With this decision, Alexandre Fonseca is looking to fully protect and safeguard the Altice Group’s best interests and all its brands, in an ongoing public process, where allegedly, there are facts under investigation which occurred in the timeframe where he was the CEO of Altice Portugal,” said the Altice Group in a statement today. “This posture from Alexandre Fonseca comes as responsible on the path to clarification of the truth.”
The investigation started on July 13th and Alexandre Fonseca resigned on July 15th. Altice USA is complying with the investigation as well as looking into the matter internally. The company has also put Chief Procurement Officer Yossi Benchetrit on leave.
“Altice USA is an independent, U.S.-based company, and, in response to the circumstances in Portugal, we immediately launched an internal investigation,” said an Altice USA spokesperson. “While we conduct this investigation, our chief procurement officer has been placed on leave to ensure the company retains its focus on its operations and serving customers. We conduct our business with the highest integrity and will continue to move forward operating our business with the best interest of our stockholders, customers, and employees at the forefront.”
Yesterday, Altice USA named CEO Dennis Mathew as Director of the Company for the foreseeable future.