U.S. SEC fines Telefonica Brasil over World Cup tickets
Telefonica Brasil SA will pay a $4.Thirteen million (£three.17 million) civil excellent to settle U.S. Securities and Exchange Commission costs over incentives furnished to 127 authorities officers in connection with soccer’s 2014 World Cup and 2013 Confederations Cup.
The SEC on Thursday stated Telefonica Brasil’s books failed to appropriately replicate bills for tickets and hospitality provided to officers able to influencing legislative, regulatory and enterprise pastime concerning the Sao Paulo-based telecommunications employer, Brazil’s largest. It stated this violated the books and facts and internal accounting controls provisions of the federal Foreign Corrupt Practices Act, an anti-bribery regulation.
Telefonica Brasil, which sells offerings under the Vivo logo and is a unit of Spain’s Telefonica SA, did now not admit or deny wrongdoing in agreeing to settle.
In a announcement confirming the settlement, Telefonica Brasil stated it has a robust code of ethics, and has been upgrading its compliance and anti-corruption controls.
According to the SEC, Telefonica Brasil furnished 194 World Cup tickets to 93 officials, and 38 Confederations Cup tickets to 34 officers. Both tournaments have been held in Brazil.
The SEC said the behavior “arose in an surroundings wherein the company did not properly put into effect its corporate antibribery and anticorruption guidelines.” It stated this included Telefonica Brasil’s standard ethics code which, like its determine’s code, forbade gift-giving that “may also reward or impact a business decision.”
Settlement papers describe a June 2014 e-mail in which an employee sought a World Cup price ticket for a legislative leader of group of workers who had “opened many doorways for us” and whose assist on regulation turned into nonetheless wanted.
The SEC stated the first-rate reflected Telefonica Brasil’s cooperation and remedial acts.
(Reporting by using Jonathan Stempel in New York; Editing by Susan Thomas and Leslie Adler)