Dutch KPN denies corruption charge

Dutch KPN denies corruption charge

THE HAGUE (AFP): Dutch telephone operator KPN Telecom denied Monday paying bribes of at least 25 million guilders (11.3 millions euro) in order to gain entry to the Indonesian market.

The rebuttal followed accusations broadcast Sunday night by the news magazine Netwerk on Dutch public television.

"We became involved because there were interesting business opportunities. No money has been siphoned off. We have never transferred money to fake accounts in Hong Kong," said a spokesman for KPN Monday.

According to the NOS, these payments were intended for decision-makers likely to favor KPN's entry into the Indonesian telecommunications market.

The KPN spokesman also denied the program's claim that KPN "risked" 200 million guilders (90.7 million euro) in 1996, acting as guarantor for a "friend" of the then Indonesian telecommunications minister.

The program asserted that this kind of transaction is a common form of bribery in Indonesia. The sum was equivalent to 10% of KPN's net profit that year.

Members of parliament have requested an explanation from the Dutch telecommunications minister Monique de Vries.

The KPN group, which has gradually been privatized since 1994, is still 44 percent owned by the state.

This is the second time in three months that the Dutch media have accused KPN of irregular business practices.

In January this year the NOS accused KPN of bribery when bidding for a stake in the Czech public telephone operator SPT.

KPN denied these allegations. After investigating the case, Minister De Vries saw no reason for further action at the time.