Australian supplier Ainsworth Game Technology (AGT) says it did not feel obliged to inform the market of bribery allegations aired against its CEO, Harald Neumann, by media outlets in his home nation of Austria prior to his appointment because those allegations were not supported by “factual evidence”.
AGT addressed the issue on Monday via an ASX filing after the Australian media last week picked up on the historical reports related to investigations into Neumann and his former company Novomatic AG by Austria’s Public Prosecutor’s Office for suspected bribery and illicit political funding. It had been alleged that Neumann, who served as CEO of Novomatic from 2014 until he stepped down in early 2020, offered donations to a political party in return for support from officials on policy that could be beneficial to the company. Neumann has denied all allegations.
AGT responded on Monday to the issue finally making headlines in Australia by stating that it informed all gaming regulators of the allegations back in 2019, when Neumann was one of its directors, to ensure that they were aware of the investigations and subsequently provided periodic updates on the status of the investigations in accordance with the company’s licensing and compliance procedures.
However, AGT said it did not believe an ASX announcement was required at the time “because the investigations were insufficiently definite and preliminary in nature with no factual evidence that would justify the allegations.
“As part of its ordinary course of business in complying with its regulatory obligations and to determine whether any change in circumstances might require disclosure to the market, the Ainsworth Board regularly monitors the matter through its Regulatory Compliance Committee (RCC). The RCC also receives regular updates from legal representatives acting for both Novomatic AG and Mr Neumann,” it added.
On the issue of Neumann’s appointment as AGT CEO some two years after the Austrian allegations were first aired, the company said, “Following a probity investigation conducted by the Compliance Division, the RCC recommended that Mr Neumann was suitable from a regulatory standpoint to be considered for the CEO position.
“Mr Neumann is licensed and has been found suitable in over 100 jurisdictions where licensure is required, with full knowledge of the investigations.”
The company reiterated that, according to information it had received from Austria’s Public Prosecutor’s Office, all except one of the investigations involving Neumann and Novomatic have been discontinued.
“Current information available on the one remaining investigation indicates that Public Prosecutor’s Office will finalise its examination on the established facts prior to submitting its proposal to the necessary Austrian regulatory authorities for approval to have this last investigation discontinued,” it said.
Inside Asian Gaming noted in an article published early Monday morning that the timing of the allegations is curious given a looming shareholder vote on a potential takeover by Novomatic of all AGT shares it doesn’t currently own. The company currently holds a controlling 52.9% stake in AGT.
Last month Kjerulf Ainsworth – the sixth son of company founder Len Ainsworth and AGT’s second largest individual shareholder with a 12% stake – revealed that he and his mother were hatching a plan to stop the takeover from going ahead, telling the Australian Financial Review, “
“We’ve got money to go and throw some serious punches. It’s hard not to be motivated if you see two- or three-dozen shareholders all getting stiffed.”
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