(FeaturedNews.com) – In 2019, US company Ericsson paid one of the largest corporate fraud fines in history. This settlement came before an internal investigation revealed more corruption within the company. As a result, the business now faces further legal trouble.
A report by the International Consortium of Investigative Journalists provided to The Washington Post revealed Ericsson hid information about its business dealings with ISIS, which included bribery and fraud. The evidence of these actions comes from internal emails, documents, and interviews of current and former employees.
The report also alleges that the company and its contractors engaged in bribery, fraud and other corrupt practices in Iraq during an eight-year period https://t.co/FII00tQoUb
— The Washington Post (@washingtonpost) February 27, 2022
While this is legally bad news for Ericsson, it’s also damaging US national security. The company is the main rival of Huawei and the alternative the United States uses to avoid doing business with Chinese companies. Still, it has ruined its trustworthiness with the government. Moreover, not revealing the ISIS connection during the 2019 case makes it seem like the company intentionally hid this information.
Ericsson released a statement on February 15 admitting to the dealings in Iraq. It followed up in another press release on March 2, noting the US Department of Justice (DOJ) said the company’s disclosures on business in Iraq were insufficient and resulted in a breach of the original settlement. Ericsson says it’s currently working with the DOJ to resolve the issue.
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