US accuses Ericsson of breaching agreement over Iraq investigation — Analysis
According to reports, the telecom company sought permission from Islamic State for work in militant-controlled cities.
Ericsson, the Swedish telecoms company giant Ericsson announced Wednesday that the US Department of Justice informed it it had broken a deferred prosecution arrangement (DPA). This was in relation to an investigation of its 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 (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 claimed that the report was leaked. According to it, the company “made tens of millions of dollars in suspicious payments over nearly a decade to sustain its business in Iraq.”
Ericsson admitted in 2019 that it conducted an internal investigation into its 2011 activities, which examined the conduct of employees, suppliers, and vendors in the country. Ericsson stated its compliance and ethics program was in place. “identif[ied]Do your research[d] the misconduct in Iraq.”But, it keeps it. “could not identify that any Ericsson employee was directly involved in financing terrorist organizations.”
Ericsson claims that despite the disclosures it does not believe they were a factor in the conclusion to the 2019 investigation. The firm stated it had made commitments 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. However, the DOJ has yet to comment publicly on this situation.
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