The Strategist

Swedish Ericsson accused of bribing officials around the world

12/09/2019 - 09:47

The US Securities and Exchange Commission (SEC) accused Swedish Ericsson of participating in a fraudulent scheme that involved the use of fictitious consultants to secretly transfer money to government officials in several countries.

According to SEC, in 2011-2017. Ericsson subsidiaries acquired assets of $ 427 million, using front consultants to bribe officials in Saudi Arabia, China and Djibouti. Third parties paid for the "luxury" trips and entertainment of government officials and their families.

In exchange, Ericsson received lucrative contracts from state-owned telecommunications companies in these countries.

Ericsson violated the American Foreign Corrupt Practices Act (FCPA) by bribing officials in Vietnam, Indonesia and Kuwait, the commission said.

Ericsson made "hundreds of millions of dollars in profits" from illegal activities, the commission emphasizes.

At the same time, the Egyptian subsidiary of Ericsson pleaded guilty to conspiracy to violate the provisions of the FCPA on bribery.

To resolve the situation, Ericsson agreed to pay more than $ 1 billion in favor of the SEC and the US Department of Justice. Including $ 539 million will go to resolve claims SEC, and Ericsson will pay $ 520 million to the US Department of Justice. The company will also introduce independent monitoring of compliance with established requirements for at least three years.


< >

Thursday, April 25th 2024 - 03:04 Italian watchdog fines Amazon €10 mln