Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) unit Bezeq International will demand the return of millions of shekels by current and former CEOs and vice presidents who received bonuses from the company on the basis of financial results that turn out to have been erroneous. The demand arises from the affair of the severe accounting irregularities at the company and the restatement of its financial statements. The company has been carrying out a comprehensive investigation of the matter, and has apparently already approached some of those concerned and informed them of the possibility that they will have to return money paid to them.
Bezeq International CEO will be asked to repay NIS 160,000 and Udi Atar, head of Bezeq's Customer Division who was at Bezeq International before transferring to Bezeq will be asked to repay NIS 150,000. It is estimated that former Bezeq International CEO Moti Elmaliach will be asked to repay NIS 1.2 million.
The discovery of the accounting irregularities led to a write-off of NIS 300 million in Bezeq International's financial statements. The error affected the company's stated profit, and hence the bonuses payable to its senior managers.
Bezeq International is still investigating the matter, apparently with the assistance of outside experts, and it is not yet clear whether approached will be made to senior managers from earlier periods. The company announced that the accounting irregularity applied to its financial statements from 2002 onwards, but the restatement was only of the financial statements from 2017 onwards.
Some of those involved are likely to oppose the return of bonuses paid to them, because of the amount of time that has passed. Altogether, the sums involved amount to several million shekels.
Bezeq declined to comment on the report.
Published by Globes, Israel business news - en.globes.co.il - on March 30, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021