Ericsson to pay $1 billion USD to settle corruption investigation

The company was accused of bribing government officials

Ericsson has agreed to pay more than $1 billion USD (approximately $1.3 billion CAD) to resolve U.S. corruption probes.

The probes from the U.S. government looked at corruption involving the bribing of government officials. The U.S. Department of Justice said that the bribery involved a number of countries including China and Vietnam and took place over many years.

Ericsson admitted that it violated the Foreign Corrupt Practices Act from 2000 and 2016 by bribing officials to get customers. It also falsified books and records.

“Certain employees in some markets, some of whom were executives in those markets, acted in bad faith and knowingly failed to implement sufficient controls,” Ericsson CEO Borje Ekholm said in a conference call on December 7th, according to Reuters.

“I view what has happened as a completely unacceptable and hugely upsetting chapter of our history,” he said during the call.

Authorities say that the company bribed government officials to keep and secure its business. It also retained consultants to transfer money to third parties.

Ericsson now says it has taken measures to improve its compliance and ethics. It says it has also reviewed its anti-corruption program.

Image credit: Ericsson

Source: Reuters