Ericsson To Pay Over $200 Mn For Breaching US Deal Over Iraq Graft
Faizan Hashmi Published March 03, 2023 | 08:55 PM
Swedish telecom equipment maker Ericsson has said it will pay a $207 million fine for breaching a deal with US authorities by not disclosing an investigation relating to suspected bribes to the Islamic State group in Iraq
Stockholm, (UrduPoint / Pakistan Point News - 3rd Mar, 2023 ):Swedish telecom equipment maker Ericsson has said it will pay a $207 million fine for breaching a deal with US authorities by not disclosing an investigation relating to suspected bribes to the Islamic State group in Iraq.
Swedish prosecutors have also opened an inquiry into the alleged IS payments, a case that has forced the company to vow an overhaul of its compliance oversight after the claims emerged last year.
US prosecutors had already imposed $1 billion in penalties in 2019 to close corruption cases in Djibouti, China, Vietnam, Indonesia and Kuwait, after Ericsson agreed to a so-called deferred prosecution agreement (DPA).
But last year, an investigation coordinated by the International Consortium of Investigative Journalists (ICIJ) revealed that an internal inquiry at Ericsson had also found suspected payments to IS jihadists in Iraq between 2011 and 2019 -- a period covered by US prosecution deal.
In a statement late Thursday, Ericsson said it had entered "a guilty plea regarding previously deferred charges relating to conduct prior to 2017," for not disclosing its inquiry to the US authorities.
"The entry of the plea agreement will bring the 2019 DPA to an end," it said.
The company had warned of the likely fine in January, setting aside 2.3 billion kronor ($220 million) in its fourth-quarter accounts to cover the cost.
Ericsson noted Thursday that since its deal with the US Department of Justice (DOJ), prosecutors had "not alledged or charged" the company with any new criminal conduct, saying the new fine related only to a failure to disclose documents to the DOJ in a timely manner.
- 'Broken promises' - "This resolution is a stark reminder of the historical misconduct that led to the DPA," Ericsson's chief executive Borje Ekholm said in the statement.
"We have learned from that and we are on an important journey to transform our culture." In a separate statement, the DOJ said Ericsson had "breached the DPA by violating the agreement's cooperation and disclosure provisions." "Ericsson repeatedly failed to fully cooperate and failed to disclose evidence and allegations of misconduct in breach of the agreement," Assistant Attorney General Kenneth A. Polite, Jr, was quoted as saying.
"As a result of these broken promises, Ericsson must plead guilty to two criminal offenses and pay an additional fine," he added.
The resolution of the issue was nonetheless received positively by investors, with Ericsson shares rising more than 3 percent in early trading on the Stockholm Stock Exchange.
The telecom giant, which is locked in a battle with Finland's Nokia and China's Huawei to supply 5G network equipment, had already posted a 17 percent drop in net profit to 19.1 billion kronor ($1.8 billion) for 2022.
The disappointing earnings came as operators slow spending on rolling out the latest 5G networks due to the global economic slowdown and rising inflation.
Ericsson, which had a total of 105,000 employees at the end of 2022, also announced last week that it would slash 8,500 jobs worldwide as part of a cost-cutting programme.
Related Topics
Recent Stories
Dubai Police Marks International Workers' Day with 'Talabat' Riders
Sharjah Ruler inaugurates 15th annual Sharjah Children’s Reading Festival
Parineeti Chopra opens up about her decision to marry politician Raghav Chadha
PCB decides to set up training camp for national team ahead of England, Ireland ..
Virat Kohli's sweet birthday wish for Anushka Sharma
Interior Minister commends Pakistan Coast Guards
Pakistan women’s squad announced for England tour
Punjab CM Maryam inaugurates initiative of field hospitals
PM Shehbaz constitutes committee to investigate caretaker govt’s wheat import ..
Women T20I: Pakistan to face West Indies in fourth match tomorrow
Pak-UK 6th Regional Stabilization Conference underway at NDU, Islamabad
World Labor Day being observed today
More Stories From Business
-
SRB tax collection surges 29% to Rs 185.2 billion
13 hours ago -
WSSP, district admin to launch joint operation against water bills defaulters
16 hours ago -
Mega Cotton Seminar held in Bahawalpur
18 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 1 May 2024
20 hours ago -
Today Gold Rate in Pakistan 01 May 2024
20 hours ago -
Petrol prices slashed by Rs 5.45 per liter
1 day ago
-
Govt reduces petrol price by Rs5.45 per litre
1 day ago -
FBR issues Income Tax General Order to enforce return filing
1 day ago -
Planning minister reviews preparations for upcoming 13th JCC meeting, PM Shehbaz’s expected visit ..
1 day ago -
FBR issues Income Tax General Order to enforce return filing
1 day ago -
LCCI delegation visits Business Facilitation Center
1 day ago -
2-day Pak-International Poultry Expo begins
1 day ago