DIGI Current report 17.05.2017
Update to the investigation by the Romanian National AntiCorruption Directorate
As disclosed by the Company in the initial public offering prospectus dated 26 April 2017 and the supplemental prospectus dated 8 May 2017 (together, the “Prospectus”), the Romanian National Anti - Corruption Directorate (“DNA”) has officially notified (i) on 5 May 2017 several current and former members of the senior management of RCS & RDS S.A., the Company’s principal subsidiary, that they are being investigated for bribery and money laundering offences in connection with a joint venture agreement concluded in 2009 between RCS & RDS S.A. and Bodu S.R.L. with respect to a large events hall located in Bucharest and (ii) on 8 May 2017, RCS & RDS S.A. that it is a suspect in the same investigation, for the same offences.
On 16 May 2017, Mr. Serghei Bulgac, Chief Executive Officer of the Company and of RCS & RDS S.A. has been officially informed by the DNA that he is a suspect in the same investigation, in relation to the offence of money laundering. The possibility of this happening in the course of DNA’s investigation was anticipated and disclosed in the Prospectus.
The Company continues to fully cooperate with the investigation and believes that RCS & RDS S.A., as well as individuals named as suspects in the investigation have acted appropriately and in compliance with the law. The Company does not currently expect the investigation to interfere with its daily operations in any material manner.