Ericsson agrees to pay $1b fine to resolve US corruption probes

Marco Green
December 9, 2019

"Through the mud funds, bribes, gifts, and corruption, Ericsson does business telecommunications with the principle bahwa'pembicaraan money, '" US Attorney Geoffrey Berman of the Southern District of NY said in a statement. The announcement was made by the US Department of Justice, which was probing into a series of allegations on Ericsson including bribing of government officials.

According to reports, the department stated that the Swedish company had agreed to pay the money in order to settle the probe launched by the government to look into violations of the FCPA (Foreign Corrupt Practices Act) that stemmed out of the company's plans to make and not properly record tens of millions of dollars in the form of improper payments across the world.

It added that Ericsson had entered into a deferred prosecution agreement in connection with criminal charges filed in a NY court.

One among the firm's subsidiaries, Ericsson Egypt Ltd, pleaded guilty within the Southern District of NY to a designate of conspiracy to violate the anti-bribery provisions of the FCPA.

According to the USA authorities, Ericsson admitted that it took such steps in an attempt to strengthen its position in the telecommunications industry.

"The settlement with the SEC and DOJ shows that we have not always met our standards in doing business the right way", Ericsson CEO Borje Ekholm said in a statement.

The US Department of Justice said the Swedish telecoms giant had "admitted to a years-long campaign of corruption in five countries to solidify its grip on telecommunications business".

Berman said that with Ericsson agreeing to pay over a billion dollars should be an eye-opener for all the corporate companies that conducting business in an unethical way will not be tolerated.

It includes a $520m criminal punishment to the equity division and an installment of $540m to the Securities and Exchange Commission (SEC).

Ericsson acknowledged it had reviewed its anti-corruption program and introduced measures to red meat up its ethics and compliance.

In a statement on its website, the company said it would not comment on the matter other than to say the figure of $1.2 billion, disclosed in September, "is still its current estimate of the amounts needed to cover the monetary sanctions" and other costs.

Carl Mellander, chief financial officer, said the amount was fully covered by a provision the company made in the third quarter and added it would not impact any financial targets.

Other reports by Click Lancashire

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