The Swedish telecommunications equipment supplier Ericsson is paying a $206.7 million fine to the American judiciary in order to be able to settle a corruption case in connection with the jihadist organization Islamic State in Iraq.
“Ericsson will pay a fine of $206,728,848” (195 million euros), the company announced in a press release published overnight from Thursday to Friday.
This agreement completes the transaction agreement (“Deferred Prosecution Agreement”, DPA) concluded in December 2019, with which the group had already paid one billion dollars to the American judiciary to investigate corruption cases in five other countries (Djibouti, China, Vietnam, Indonesia and Kuwait).
The just-agreed settlement stems from Ericsson’s failure to submit the results of an internal investigative report into alleged bribes to the US judiciary, whose universal jurisdiction allows it to prosecute a number of foreign groups in many areas.
“This resolution is a stark reminder of the historic wrongdoing that led to the DPA. We have learned the lessons and embarked on an important journey to change our culture,” said group leader Börje Ekholm, quoted in the press release.
The internal investigation specifically points to suspicious payments for road transport in areas controlled by the Islamic State organization, which is suspected of having ended up in the pockets of the jihadist group when it controlled part of Iraqi territory.
Ericsson has already recognized “unacceptable behavior” and has assured that he has worked hard against the risk of corruption.
This Iraqi file, which has embarrassed the group since 2022, is also the subject of an investigation in Sweden.