HEADLINES:

Ericsson to pay over $200 million for violating prosecutor agreement, involves schemes in Iraq

PM:05:50:04/03/2023

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SULAIMANI — The Swedish telecom company Ericsson was fined $206 million for its violation of a non-prosecution agreement through bribery schemes in Iraq, Djibouti and China.

The company pleaded guilty to bribery and other wrongdoings in 2019, paid a penalty of $520.6 million and had an agreement with the US Attorney’s Office that required the company to report any potential wrongdoings for the next three years.

Ericsson also paid $540 to the Securities and Exchange Commission.

The allegations from 2019 involved bribery and falsification of records in China, Djibouti, Indonesia and Kuwait. However, the Department of Justice said Ericsson had not provided all information on its dealings in China and Djibouti, and similar evidence of wrongdoing in Iraq.

The International Consortium of Investigative Journalists said the US Department of State has contacted the Swedish company several times since 2019 to warn the company about a breach in their agreement but the company did not provide details.

The ICIJ said according to a leaked internal report, the company attempted to receive permission from the Islamic State (ISIS) to work in a city that was controlled by the group and paid for equipment to be smuggled into ISIS-held areas.

The investigation has also revealed the Swedish company paid tens of millions of dollars to keep its business running in Iraq, including through bribery and corruption.

(NRT Digital Media)