Ericsson to pay $206mln for breaching US prosecutor deal
Sweden’s Ericsson will pay a $206 million fine and plead guilty after violating a 2019 deal with U.S. prosecutors that required the telecoms firm to properly disclose information on its activities in Iraq, China and Djibouti.
The plea agreement with the U.S. Justice Department follows a scandal over possible payments made to the Islamic State militant group through its activities in Iraq.
The Justice Department said in a statement the telecommunications firm fell short in disclosing activities after entering a deferred prosecution agreement (DPA) in 2019 to resolve a probe into years of alleged corruption in China, Vietnam and Djibouti.
Under the DPA, the Justice Department had agreed to hold off prosecuting Ericsson for three years if it paid a steep penalty, implemented “rigorous internal controls”, complied with U.S. laws and cooperated fully on any ongoing investigations.
“Ericsson breached the DPA by violating the agreement’s cooperation and disclosure provisions,” the Justice Department said in a statement.
This report’s information was first seen on ZAWYA; to read more, click this link.
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