2023-08-07 18:57:03
“A shock and a huge disappointment. » Monday, facing investors, Patrick Drahi took about ten minutes to hammer home his version of the facts that splash his group, Altice (engaged in France in telecoms with SFR, in the media with RMC or BFM). He promises: his multinational is a victim “of a small group of individuals having hidden their actions and profited from some of our acquisitions, to the detriment of the group and my reputation”, he said. He spoke for the first time on this subject.
If the French billionaire comes out of his usual silence, it is because the scandal affecting his empire is of magnitude. On July 13, in Lisbon, the Portuguese tax authorities landed on the premises of the local subsidiary of the group, and arrested Armando Pereira. A particularly important man in the Altice galaxy, considered the number two in the group, even the right arm of Patrick Drahi and the de facto director of Altice Portugal, without having the mandate.
Tax evasion and corruption
What is he accused of? Tax fraud, corruption and money laundering. He would be responsible for awarding numerous subcontracts to companies that belonged to him in hidden ways, thus diverting large sums of money to the group. He would also have led the illegal sale of buildings owned by the Altice group. He would also have undertaken to hide part of his assets (a sum close to 100 million euros) in an investment fund of which members of his family would be the beneficiaries. So many operations that would have lost nearly 100 million euros to the Portuguese tax authorities and more than 500 million to the Altice group.
The fall of Armando Pereira led to that of many of his relatives also working in the group. Alexandre Fonseca, chairman of the board of directors of Altice USA, and Yossi Benchetrit, purchasing manager of Altice USA and son-in-law of the Portuguese businessman, were suspended. Same fate for Tatiana Agova-Brégou, member of the executive committee of Altice France and accused of having benefited from a property in Neuilly-sur-Seine and luxurious gifts from Armando Pereira.
Patrick Drahi aware?
If Altice strongly condemns these practices and multiplies internal investigations, doubt remains. From investors to employees, one question remains: could Patrick Drahi ignore these embezzlements? If the businessman claimed to have discovered everything on July 13, ensuring that he had “felt deeply betrayed”, his proximity to Armando Pereira questions. Because more than simple collaborators, the two men are ” Blood brothers “, in the words of an Altice employee quoted by The world.
A relationship that dates back to the 1990s. Patrick Drahi, then owner of the French companies Sud Cable Services and Medianetworks, hired Armando Pereira. The beginning of a friendship based on a common history of entrepreneurs from immigrant backgrounds (Moroccan for one, Portuguese for the other), ready to work hard. In 2002, they co-founded the Altice group together.
In addition to entrepreneurship, the two friends notably share a common affection for tax havens. In a collaborative investigation, the media Reflets, Blast and StreetPress indicated that the ” Blood brothers “ are also said to be neighbors in Saint Christopher and Nevis, an island state in the West Indies known for its tax advantages.
abnormal blindness
Some are also surprised by the blindness of Patrick Drahi, yet known for his desire to control everything down to the smallest detail. “On a day-to-day basis, expenses are the most watched thing in the groupexplained to AFP Olivier Lelong, CFDT union representative at Altice. It is of such magnitude that there has necessarily been a problem in terms of control and governance of the company. »
While the Portuguese tax investigation has been described as a blow for the group, other sources indicate that the problem was known. An employee thus affirmed to the Mediapart online information site that “What Portuguese justice is bringing to light today, many people knew about it, but were silent for fear of losing their jobs”.
A group hit by its debts
For Patrick Drahi and his group, the case could not have come at a worse time. If the company has been able to develop thanks to massive recourse to indebtedness, the sudden rise in interest rates means that this becomes an increasingly heavy burden. In the first quarter of 2023, the multinational accumulated nearly 60 billion in debt and the rating agencies made it an asset “highly speculative”.
While Altice is trying to maintain investor confidence, the Armando Pereira scandal could be a serious blow to its credibility. And some financial analysts imagine Patrick Drahi as the next Jean-Charles Naouri, the recently deposed leader of the Casino empire.
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