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By Yoram Gavison

The Bezeq phone company's auditor is probing suspected financial mismanagement at affiliate YES, a satellite television broadcaster.

Since YES's launch in mid-2000, Bezeq has streamed enormous amounts of money to the company and is fretting that its infusions may have been wasted.

Bezeq decided on the audit by Zvi Shapira in June, after funneling another $40 million to YES, increasing its total investment in the satellite broadcast provider to about $140 million. Bezeq's board also decided that YES managing director Shlomo Liron should present it with a general report on YES' situation and explain exactly why it needed the infusion.

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Among the matters under investigation is a $22 million deal that YES concluded with a sports program provider - a deal which later fell through.

YES ended the second quarter of 2001 with a loss of NIS 208 million, compared to a loss of NIS 140 million in the first quarter.

YES officials commented that it had itself encouraged the internal audit.