Irregularities at Bezeq Int'l estimated at NIS 195m

Pelephone CEO Ran Guron  photo: Shlomi Yosef

Discrepancies in its subsidiary's accounts mean Bezeq will need to restate previous years' financials.

The damage emerging at Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) unit Bezeq International from past accounting irregularities is much higher than was first estimated, and amounts to some NIS 195 million. An examination by external auditors has revealed material gaps between the net balance of assets on Bezeq International's books and the actual balance. The company says that the estimated damage will be mitigated by the tax effect.

The initial findings are that the discrepancies mainly arise from routine failure to record expenses fully. Bezeq International's cash balance is not expected to be affected. Bezeq will need to carry out a valuation of Bezeq International by the end of the year.

Bezeq reported that it will probably have to state previous years' financial statements, and that publication of its third quarter financial statements will be delayed.

Ran Guron, CEO of Bezeq subsidiaries Bezeq International, Pelephone, and Yes, said, "We are treating the matter with the utmost seriousness and will not spare any effort until the incident is finished and dealt with fully."

Bezeq said that it was cooperating with the Israel Securities Authority in investigating the matter.

Published by Globes, Israel business news - en.globes.co.il - on November 18, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Pelephone CEO Ran Guron  photo: Shlomi Yosef
Pelephone CEO Ran Guron photo: Shlomi Yosef
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