Sweden's Ericsson to pay over $1bn to settle US corruption probe

Sweden's Ericsson to pay over $1bn to settle US corruption probe
By: WNG BBC Posted On: December 06, 2019 View: 69

Sweden's Ericsson to pay over $1bn to settle US corruption probe

Sweden's telecoms giant Ericsson has agreed to pay more than $1bn (£760m) to resolve allegations of bribery, the US Department of Justice has announced.

It said the company had "admitted to a years-long campaign of corruption in five countries to solidify its grip on telecommunications business".

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

Ericsson has so far made no comment.

The firm is one of world's biggest makers of mobile network equipment.

What did the US justice department say?

Its statement said that Ericsson had agreed to pay the penalty to "resolve the government's investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of the Company's scheme to make and improperly record tens of millions of dollars in improper payments around the world".

"Through slush funds, bribes, gifts, and graft, Ericsson conducted telecom business with the guiding principle that 'money talks'," said US Attorney Georffrey S Berman of the Southern District of New York.

"Today's [Friday's] guilty plea and surrender of over a billion dollars in combined penalties should communicate clearly to all corporate actors that doing business this way will not be tolerated," he added.

The department said that Ericsson had operated its corrupt scheme "beginning in 2000 and continuing until 2016".

The US justice department named the five countries involved as Djibouti, China, Vietnam, Indonesia and Kuwait.

Read this on WNG BBC
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