Australian telecommunications giant Telstra may have been exploited by Chinese executives while conducting due diligence on two mobile companies it purchased five years ago, according to The Australian Financial Review.
The issue, which relates to two firms that have been the subject of significant write-downs, came to light after reports in Chinese business publication Caixin, which discussed kickbacks to executives at state-owned China Mobile.
Telstra reportedly met China Mobile executives to discuss a purchase of the two companies -- Sharp Point and China M -- worried that the recent growth of the firms may be short-lived. According to the report, China Mobile offered words of comfort to Telstra on the purchase, but the telco was unaware two China Mobile executives were to be paid $US67 million from the $259m deal.
“We are concerned about any allegations of impropriety against the companies and we take governance and compliance extremely seriously,” a Telstra spokesperson told the AFR. “We exercised due diligence in the transaction."
Telstra is not accused of any wrongdoing.
