The Swedish telecoms giant Ericsson announced on Thursday March 2 that it had accepted a fine of 206.7 million dollars (195 million euros) in the United States for alleged acts of corruption linked to possible bribes. donated to the Islamic State (IS) organization in Iraq.
In December 2019, the group had already paid a billion dollars to the American courts to end corruption proceedings in five other countries (Djibouti, China, Vietnam, Indonesia and Kuwait), as part of a settlement agreement to plead- guilty. But Ericsson had omitted to inform the authorities of serious suspicions of corruption in Iraq, however supported by the results of an internal investigation.
An internal report hidden from the authorities
It was in the press that the damning conclusions of this report were revealed, in February 2022, by the international survey “the Ericsson List”, carried out by the International Consortium of Investigative Journalists (ICIJ) and its partners, including The world. The internal audit mentioned in particular commissions paid between 2011 and 2019 for road transport in areas controlled by IS, suspected of having ended up in the pockets of the jihadist group. The revelations of the ICIJ had triggered the opening of a judicial inquiry in Sweden and an investigation by the gendarme of the American Stock Exchange. It had also led to the exclusion of Ericsson from the anti-corruption initiative of the Davos forum.
In a press release released on Fridaythe US Department of Justice (DOJ) strongly criticized Ericsson’s behavior following the first settlement agreement of 2019, with a requirement for transparency and cooperation on its past practices. “Instead of honoring this commitment, Ericsson has (…) failed to disclose evidence and allegations of misconduct”lamented the DOJ, explaining that it had “prevented the United States from prosecuting certain individuals and carrying out essential investigative acts”. « Companies should be aware that we will closely examine their compliance with all terms of corporate resolution agreements and that there will be serious consequences for those who fail to meet their commitments.”continued the American institution.
“Historical misconduct”
Judicial resolution in the United States “is a stark reminder of the historical misconduct that led to the DPA. We have learned from this and embarked on an important process to transform our culture”assured the boss of Ericsson, Börje Ekholm, in a statement. The group announced Tuesday the departure of its head of ethics and compliance, Laurie Waddy, without citing the Iraqi file.
Mr. Ekholm had previously admitted that some of his employees may indeed have paid bribes. Ericsson had already recognized “unacceptable behavior” and guaranteed to have worked hard once morest the risk of corruption.
