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Ericsson Uncovers Potential Corruption; Employee Bribing of ISIL in Iraq

An internal investigation by the Swedish telecom company has uncovered evidence of potential ethical and legal violations, including the bribing of ISIL members in return for road-use in Iraq.
  • Carlos Perona Calvete
  • — February 20, 2022
An internal investigation by the Swedish telecom company has uncovered evidence of potential ethical and legal violations, including the bribing of ISIL members in return for road-use in Iraq.
  • Carlos Perona Calvete
  • — February 20, 2022

The Swedish networking and telecommunications company Ericsson has released a statement admitting that an internal investigation carried out in 2019 revealed multiple violations of its compliance rules and code of ethics. 

These point to potential corruption in the following ways: making donations without specifying the beneficiary, failing to properly define the scope of a project before paying suppliers, and funding inappropriate travel expenses. There is also some indication of money laundering. The results of this investigation were shared with the U.S. Department of Justice (DOJ).

Perhaps the most worrying element to surface during the investigation is the suggestion that Ericsson employees were able to avoid Iraqi customs by bribing ISIL members in Iraq in return for being allowed to use certain roads, going back to 2018. 

There is some precedent for this behavior. Ericsson employees apparently bribed government officials in China, Vietnam, and Djibouti, among other countries. After this surfaced, the company would eventually pay $1 billion to the DOJ. 

This most recent scandal has already had an impact on Ericsson’s share prices. It remains to be seen how the company will restore investor confidence.

Carlos Perona Calvete is a writer for The European Conservative. He has a background in International Relations and Organizational Behavior, has worked in the field of European project management, and is the author of Meta-Politics: City of God, cities of men (Angelico Press, 2023), in which he explores the metaphysics of political representation.
  • Tags: corruption, Ericsson, Iraq, ISIL, telecommunications

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