The Balkan deals include the acquisition of 75% in the Kosovo internet services provider Ipko, and the purchase of the Albanian mobile services company AOL SP.

The report on the audit looking into the period between 1 January 2006 and 23 March 2011 was posted on the Ljubljana Stock Exchange website on Thursday.

In addition to EUR 7m, which is the damage stemming from investments estimated at on 31 December 2011, the audit also found damages from loans given, which were estimated at EUR 40,000 by the end of 2011.

The audit has found that the Telekom Slovenije group was damaged by at least EUR 3.86m in the 2007 acquisition of Ipko. The investment amounted to EUR 19.5m, of which EUR 10m was to be invested in the modernisation of the company.

Damage also incurred when the telco sold Ipko to Factor banka, according to the audit, which estimates it at EUR 8.34m.

The report moreover shows that Telekom Slovenije suffered damage of at least EUR 1.65m in the 2007 purchase of Albanian AOL SP, which was later renamed Primo.

Moreover, the telco was damaged by at least EUR 0.47m in the purchase of the company owning the Najdi.si search engine in 2007.

The report also states that the acquisition of Macedonian ISP On.net in 2006 was not transparent, but the auditors do not believe that the Telekom Slovenije group suffered damages.

The audit report was confirmed by the supervisory board on Wednesday, while the stakeholders are to discuss it on 7 March.

The audit was requested last year by state-run KAD and SOD funds, which hold a combined 20% stake in the parent company. Telekom shareholders commissioned in March 2011 Deloitte to audit certain deals and investments, takeovers in Slovenia and abroad, as well as sales and purchases of real estate.

The report comes after a 2010 audit report found a number of irregularities in the takeovers in Macedonia and of Najdi.si and after legal action was initiated against the previous management led by Bojan Dremelj, who was in charge of the telco between 2006 and March 2010.

Earlier this month, Dremelj accused the current management of concealing the Deloitte audit report, saying the audit shows that his management worked well. CEO Ivica Kranjčevič rejected the claims.

Dremelj responded today, saying that this summary of the special audit report was in complete contradiction with the report that Deloitte signed on 7 December 2011. He claims that Telekom supervisors demanded from the auditors to change the report subsequently.

"We're amazed that an international auditing house gave in to pressures of one of its subjects - the current supervisory board of Telekom Slovenije was subjected to the audit for a period of two of the five years - and changed the report under its pressure."

He moreover said that his management rejected having caused any damage to Telekom Slovenije and that they would prove that both this and the previous report included a number of false statements.