Tigo Guatemala to pay $118m to settle US bribery and narcotics-linked probe

Tigo Guatemala has paid more than US$118 million to settle a case brought by the US Department of Justice, which investigated the Millicom-owned operator over widespread bribery involving illicit proceeds linked to narcotics.

In a statement, the Justice Department said the company had entered into a two-year deferred prosecution agreement following a “long-running scheme”. The agreement was filed in the Southern District of Florida, charging Tigo Guatemala with one count of conspiracy to violate the anti-bribery provisions of the US Foreign Corrupt Practices Act (FCPA).

The DOJ has jurisdiction over the case as Millicom is incorporated and headquartered in Luxembourg and has its principal place of business in the United States.

According to the department, Tigo Guatemala “engaged in widespread and systematic bribery” between 2012 and 2018, carried out through a former Guatemalan shareholder and other senior employees.

The scheme involved monthly payments, often made in cash, to Guatemalan members of congress or members of their security teams. In return, Tigo received political support for legislation favourable to the company. Some of the funds used for the bribes were laundered proceeds from narcotics trafficking.

Resolution

Under the deferred prosecution agreement, Tigo agreed to pay a US$60 million criminal penalty and US$58.2 million in administrative forfeiture.

Tigo disclosed suspicions of bribery within its Guatemalan operations in 2015. However, the company’s then-shareholder in Guatemala used its operational control to block Millicom from accessing key information and prevented the parent company from requiring staff cooperation or implementing remedial measures.

The Justice Department said Tigo later provided “substantial cooperation” during the investigation.

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