Comunicaciones Celulares S.A. Resolves DOJ Investigation Related to Historical Conduct

Core Viewpoint - Millicom International Cellular S.A. has resolved a U.S. Department of Justice investigation regarding historical improper payments made by its subsidiary, Comunicaciones Celulares S.A. (Comcel), to Guatemalan government officials, with a focus on the company's commitment to ethical standards and compliance [1][2]. Summary by Sections Investigation Background - The investigation was first disclosed in May 2022, with Millicom having voluntarily self-reported alleged improper payments in 2015 and fully cooperating with authorities [2][3]. - Millicom lacked operational control over Comcel until acquiring full ownership in November 2021, which limited visibility into Comcel's actions [5]. Compliance and Remediation Efforts - Following the self-disclosure, Millicom invested significantly in enhancing its global corporate compliance program, which was implemented in Guatemala after full ownership of Comcel [4][6]. - Major remediation steps included the exit of personnel involved in misconduct at Comcel [6]. Resolution Details - The investigation concluded with a deferred prosecution agreement (DPA) between Comcel and the DOJ, lasting two years instead of the standard three, due to Millicom's extensive cooperation and compliance efforts [7]. - Comcel will pay a $60 million fine and forfeit approximately $58.2 million in benefits from the improper payments, with the fine reflecting a 50% discount off the minimum penalty range under U.S. Sentencing Guidelines [8]. Company Commitment - Millicom has consistently acted as a responsible and transparent company, emphasizing its commitment to high ethical standards and operational transparency since gaining control of Comcel [9]. - The company aims to continue its focus on connecting people and driving digital inclusion in the markets it serves [9].