OT Sees Fine of $1.3 Bln Against Djezzy

Orascom Telecom Holding (OTH) (ORTE.CA) expects the issue of a $1.3 billion fine levied by authorities against its Algerian unit to be settled by the end of the year, and does not see the need to set aside any cash for the penalty as the allegations of foreign exchange breaches are groundless.

CEO Ahmed Abou Doma told Zawya Dow Jones that the appeal could take months, and not years.

Last month, Algeria’s Court of Appeal upheld the fine handed down to Orascom Telecom Algeria, or Djezzy.

Djezzy is now taking the necessary steps to file an appeal with the Algerian Supreme Court, OT said at the time, a move that provisionally suspends the court judgment.

Doma said they do not make a provision because the legal development is likely to take time, and he expressed optimism of a successful settlement of the issue. Doma said the Algerian government has put on hold plans to allot 3G licenses until the issue with Djezzy is resolved. He said OT still has 56% market share in Algeria.