The large Swedish group Ericsson has identified acts of corruption in its activities in Iraq. The company suspects in particular that bribes paid by employees could have been perceived by the Islamic State organization, acknowledged its CEO, Börje Ekholm, Wednesday, February 16.
During the period when the jihadist organization controlled part of Iraq, people linked to the group “paid for road transport in areas controlled by terrorist organizations, including IS”Mr. Ekholm said. “With the means at our disposal, we have not been able to identify the final beneficiaries of these payments”he admitted in an interview with the Swedish daily Dagens Industri.
These conclusions, made public following ongoing journalistic inquiries, in particular by journalists from the Worldappeared in an internal investigation carried out in 2019 by the world number 2 telecom network as part of its anti-corruption control.
Several group employees disembarked
In a press release published on Tuesday evening, Ericsson thus admitted “serious breaches of its legal compliance rules and group business ethics” during the period 2011-2019 in Iraq. Its internal investigation identified “evidence of wrongdoing in corruption” committed by employees, vendors and suppliers, the group said.
These facts include “donations of money without a clear beneficiary; paying a supplier for work without clear documentation or framework; using vendors to make cash payments; unjustified financing of travel and expenses” or “inappropriate use of vendors and consultants” and various violations of internal rules.
Transactions may also have created “a potential risk of money laundering”corn “the investigation could not identify the direct involvement of any Ericsson employee in the financing of terrorist organizations”, according to the group. Several employees have been fired and other disciplinary measures have been taken since this investigation, he said.
Stock market fall
Ericsson, who had already revealed last week to be questioned by the media on facts of corruption in Iraq, saw its title plunge Wednesday on the Stockholm Stock Exchange following these new elements. Around 10 a.m. (Paris time), the stock fell by nearly 8.7%.
The group is already in the sights of American justice for acts of corruption in other countries. Elements on the Iraqi component were transmitted to the American justice, specified Mr. Ekholm in his interview.