Armando Pereira, the co-founder and former chief operating officer of telecommunications group Altice, will be released from custody and held under house arrest after being detained in Portugal as part of a sweeping investigation into alleged corruption.
(Bloomberg) — Armando Pereira, the co-founder and former chief operating officer of telecommunications group Altice, will be released from custody and held under house arrest after being detained in Portugal as part of a sweeping investigation into alleged corruption.
The decision was announced by a judge in Lisbon on Monday evening and confirmed by Pedro Marinho Falcao, one of Pereira’s lawyers. Pereira was one of three people detained after police carried out 90 searches in homes and offices on July 13 to 14 as part of a three-year investigation into alleged corruption, tax fraud and money laundering.
At this stage, Pereira has a status of “arguido,” which is similar to person of interest. He’s “completely” innocent, Manuel Magalhaes e Silva, another of Pereira’s lawyers, said on Thursday.
“The investigations that will continue in order to establish, when applicable, the real responsibilities of everyone inside and outside Altice will be lengthy, and Mr. Armando Pereira intends to play an active part in them, remaining at the disposal of the courts to demonstrate that his decisions have always been taken in the interests of the company, of which he is a shareholder,” his lawyers said in an emailed statement on Monday.
While Pereira no longer holds a formal executive role at Altice, his influence runs deep in the group that includes Altice Europe NV and the listed unit Altice USA Inc. After co-founding the company two decades ago with billionaire Patrick Drahi, he remained central to the company, handling the technical side of the business, the contracts with suppliers and cost-cutting in human resources.
Read more: Billionaire Drahi’s Ally Put in Spotlight in Corruption Probe
Drahi founded Altice with Pereira and another partner in France in 2002 and expanded it through high-profile acquisitions of companies like French carrier SFR Group SA, and Suddenlink Communications and Cablevision Systems Corp. in the US. Altice also became the biggest shareholder of British carrier BT Group Plc after starting to build a stake in 2021. Years of aggressive acquisitions fueled by cheap borrowing have saddled the businesses with more than $50 billion of debt.
Altice International said on Wednesday it placed several key legal representatives, managers and employees in Portugal and other countries on leave while the investigation is carried out, and said it will consider all “legal options.”
Prosecutors suspect that procurement decisions taken at Altice, the largest telecommunications operator in Portugal, were rigged in a way that harmed the group’s own companies and competitors, Portugal’s Central Department of Criminal Investigation and Prosecution said in a statement after carrying out the searches.
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