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French-Israeli tycoon Patrick Drahi has stated that Altice Group will not be impacted by the corruption investigation in Portugal that involves key figures connected to his telecommunications empire. Drahi assured investors during a call that the brand loyalty and reputation of Altice Group remain unaffected, and there has been no impact on their businesses thus far. In fact, Drahi believes that the company can save money by buying directly from suppliers not involved in the allegations.

Altice Group has suspended over a dozen employees in relation to allegations of corruption, money laundering, and tax fraud. Following a three-year investigation that led to searches, arrests, and the house arrest of Drahi’s right-hand man, Armando Pereira, Altice is conducting internal audits of its procurement practices and suppliers. The fallout from the probe has caused concern regarding the group’s outstanding bonds and its billion debt pile.

Altice France’s management is exploring options to reduce debt, including asset sales and an equity injection from Drahi himself. The company had planned to sell its data center portfolio in France but has had to extend the process due to the Portuguese investigation.

Drahi also revealed that Pereira worked as an adviser to Mathieu Cocq, CEO of Altice France’s mobile network SFR. However, the advisory role was terminated independently of the recent events. Pereira had worked closely with Drahi for two decades and had been responsible for technical operations and procurement.

During a debt investor call for Altice International, which includes the Portuguese unit, Drahi expressed feeling betrayed and deceived by the individuals being investigated. He emphasized that he had no direct shares in Altice entities, only a small investment of less than 1% equity in the first acquisition.

Altice maintains that it is a victim of alleged wrongdoings and has initiated internal audits across all regions. The company is also conducting a thorough review and reinforcement of its approval processes related to procurement and payments.

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