Swisscom CEO takes helm of Fastweb

Swisscom CEO Carsten Schloter has temporarily taken the reins of embattled Fastweb to avoid having its Italian subsidiary fall into receivership.

The internet provider is under investigation for alleged tax fraud and money laundering. Fastweb CEO Stefano Parisi and three other managers have been suspended. Schloter said he would work out of Milan part time “for a few months”.

In an interview with Bern-based Der Bund newspaper published on Friday, Schloter stressed there was no evidence that Parisi had done anything wrong. However it was in the company’s best interest for Schloter to take over in the meantime, he said. The power shift happened on April 1.

Schloter said the case has not affected business so far, “but we must wait for the next six months to get a sound assessment”.

Fastweb and sister firm Sparkle are at the centre of an investigation into sales of nearly €2 billion (SFr2.9 billion) made between 2003-2006 involving fictitious companies. Italian justice authorities have 80 suspects and warrants out on 56 of them, including Fastweb founder Silvio Scaglia.

Swisscom bought Fastweb from Scaglia in 2007.

swissinfo.ch and agencies