Ericsson will pay a $206 million fine for corruption in Iraq
Swedish telecommunications group Ericsson to pay $206 million fine ($1.07 billion)
Swedish telecommunications group Ericsson will pay a $US206 million ($1.07 billion) fine to a US court to end a lawsuit over alleged payments to the Islamic State (IS) extremist group in Iraq.
“Ericsson will pay a fine of $206,728,848,” the group said in a statement.
The payment will complement the settlement announced in December 2019 with the American justice. In the first instance, the Swedish group agreed to pay a US$1 billion fine for corruption in five other countries (Djibouti, China, Vietnam, Indonesia and Kuwait).
The now-announced fine stems from Ericsson’s failure to provide US justice, which has broad jurisdiction in several areas to prosecute foreign groups, with the findings of an internal investigation into the alleged bribery.
The investigation cited questionable payments made to facilitate road transport in IS-controlled areas. The money would have reached the extremist group at a time when it controlled part of Iraq’s territory.
“This resolution is a stark reminder of the historic misconduct that led to the agreement. We have learned from this and are on an important journey to transform our culture,” Ericsson CEO Børje Ekholm said in a statement.
The Swedish company acknowledged the “unacceptable behavior” and said it was doing everything it could to prevent corruption.
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In addition to American justice, the Iraq case is being investigated in Sweden.
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Agence France-Presse
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