STOCKHOLM (dpa-AFX) – In the case of possible bribery payments in Iraq, the US Department of Justice considers the subsequent disclosure of the network supplier Ericsson (Ericsson (telephone AB LMEricsson) (B)) to be insufficient. The Swedish group announced this on Wednesday. In addition, the agency found a violation of the Deferred Prosecution Agreement (DPA) concluded in December. The company is in talks with the authorities and has committed to cooperation. It is still too early to predict the possible outcome of the case, the statement said.
Ericsson shares slipped in Stockholm and were down around 13 percent around noon. In mid-February, the Swedish network supplier admitted to violating its own business principles and possible bribery payments in Iraq. Unusual payments back to 2018 would have triggered an internal investigation, the company said at the time. This raised concerns about the conduct of business in Iraq.
In the investigations into the years 2011 to 2019, indications of possible corruption emerged, including money transfers with no known recipient and payments to a supplier without a clearly defined scope of services. Apparently, payments were also made to middlemen and alternative transport routes were chosen, for example to avoid Iraqi customs.
The routes are said to have been controlled by terrorist organizations such as the Islamic State (IS) at the time. However, the auditors could not find out who ultimately received the payments, Ericsson explained at the time. Transactions and payments that posed a potential money laundering risk were also uncovered.
In response to the investigation, the company reportedly fired several employees and ordered disciplinary proceedings. Business relationships with previous partners have also been dissolved. According to the group, the investigations had not revealed any evidence of direct financing of the terror network by Ericsson employees. The company reaffirmed this assessment on Wednesday./nas/stw/men
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