© Archyde.com. The Swedish Ericsson logo in Stockholm – Photo from Archyde.com archive.
STOCKHOLM (Archyde.com) – Ericsson Inc said on Thursday that the U.S. Securities and Exchange Commission has opened an investigation into matters contained in the company’s report on its investigation into Iraq practices in 2019.
The Swedish telecoms equipment manufacturer added that it was cooperating fully with the commission and that it was too early to determine or predict the outcome of the investigation.
Ericsson revealed in February that an internal investigation found that it may have made payments to the Islamic State militant group in Iraq, a breach that Ericsson said “began at least in 2011.”
The US Department of Justice, which fined Ericsson in 2019 to settle another bribery case, is also investigating the company’s handling of the investigation and is expected to fine it.
As part of that settlement, Ericsson agreed to hire an independent compliance monitor for a period of three years.
A spokesman for the Securities and Exchange Commission did not immediately respond to a request for comment.
US agencies investigate companies if they violate the Foreign Corrupt Practices Act, which governs a US person or company paying money or anything of value to a foreign official in order to obtain employment.
The Department of Justice primarily handles the criminal aspects of the investigation, while the Securities and Exchange Commission does the civil aspect. When a joint settlement is reached with a corporation, any fine amount is divided between the agencies.
(Prepared by Ali Khafagy for the Arabic Bulletin – Edited by Mustafa Saleh)
