Armando Pereira, a long-time confidant of billionaire Patrick Drahi, is currently in the spotlight as the primary target of an investigation into the operations of telecommunications empire Altice. The 71-year-old Pereira, who co-founded Altice and served as its former chief operating officer, was recently detained in Portugal in connection with a criminal probe into private corruption, tax fraud, and money laundering.
While Pereira's lawyers argue that he has been unfairly judged by the media and that the situation is not as straightforward as it seems, Altice has taken action by suspending around 10 employees following the investigation. Portuguese authorities are examining contracts with approximately 60 of Altice's suppliers in the country, and there is a possibility that the probe may extend to the group's broader procurement practices, as some Portuguese suppliers also worked with Altice in France.
Armando Pereira has been a trusted collaborator and advisor to Drahi, and has played a significant role in the growth of Altice through debt-fueled acquisitions across Europe and America. His responsibilities included executing the technical side of operations and negotiating procurement contracts. Known for his cost-cutting measures, Pereira reduced headcounts at companies like French carrier SFR Group and the Portuguese assets of Portugal Telecom after Altice acquired them.
Concerns have also been raised about Pereira's connections to Altice suppliers. In 2014, a French court discovered that Pereira was a shareholder of ERT, a major partner of Altice in cable network construction, through a Luxembourg holding. However, Altice claimed that Pereira had sold his shares in ERT before it began working with the company.
The extent of Pereira's personal wealth remains unknown, though he was once an Altice shareholder. His son-in-law, Yossi Benchetrit, who serves as Altice USA's chief procurement officer, has been placed on leave while an internal investigation takes place. Altice's bond prices have experienced a decline in response to the probe, suggesting that investors are temporarily concerned about the situation.
The outcome of the investigation could potentially have a negative impact on Altice's reputation, particularly with creditors and future lenders as the company plans to raise debt in 2025. As the probe unfolds, Altice has suspended the contracts under scrutiny and initiated internal audits across all regions where it operates.