US accuses Ericsson of breaching agreement over Iraq investigation
Swedish telecoms giant Ericsson revealed on Wednesday that the US Department of Justice (DOJ) has informed it that it has breached a deferred prosecution agreement (DPA) over an investigation into its alleged activities in Iraq.
The statement was issued after the International Consortium of Investigative Journalists (ICIJ) published an article stating that a leaked report allegedly revealed Ericsson’s “secret dealings” with Islamic State (IS, formerly ISIS).
“Ericsson sought permission from the terrorist group known as the Islamic State to work in an ISIS-controlled city, and paid to smuggle equipment into ISIS areas on a route known as the ‘Speedway’,” the ICIJ claims the leaked report revealed. It alleges the firm “made tens of millions of dollars in suspicious payments over nearly a decade to sustain its business in Iraq.”
Ericsson has admitted that it had carried out an internal investigation in 2019 on its activities dating back to 2011, examining the conduct of its employees, vendors, and suppliers in the country. It has stated that its ethics and compliance program had “identif[ied] and investigate[d] the misconduct in Iraq.” However, it maintains it “could not identify that any Ericsson employee was directly involved in financing terrorist organizations.”
Despite the revelations, Ericsson says it is not of the view that they had any bearing on the conclusion of the 2019 investigation. It has stated that the firm has committed to “investigate and take action to address any new information.”
“Ericsson is under a compliance monitorship, and the deferred prosecution agreement with the US Department of Justice remains in effect,” the firm’s statement concludes. The DOJ has not yet publicly commented on the updated situation.
