Ericsson is facing a preliminary investigation from Sweden’s national anti-corruption unit as the press continues to increase over the company’s handling of an alleged year-long mutiny in Iraq, ICIJ’s media partner This was reported by SVT today.
Although the Swedish prosecutor Leif Görts did not explain why the investigation was initiated, the move was expected, as the corruption allegations come from Ericsson’s own investigation, according to SVT.
The internal corporate report, leaked to ICIJ and shared with 30 media partners, describes a widespread pattern of alleged corruption and transplantation in Iraq between 2011 and 2019, and how long the global telecom company took to capture the Iraqi market.
Ericsson sought permission from the terrorist group known as the Islamic State in Iraq and Syria to work in an ISIS-controlled city and paid protection money to smuggle equipment through ISIS-held zones on a route called “Speedway”, according to Ericsson List Investigation.
The report obtained by the International Consortium of Investigative Journalists revealed that Ericsson made tens of millions of dollars in suspicious payments in Iraq, funded slush funds, trips abroad for defense officials and payments to executives of corporate clients and possibly terrorists.
Since the Swedish anti-corruption investigation is at its earliest stage, Görts did not provide any details but said that an investigation is also underway for similar accusations against Ericsson in China.
Ericsson has been hit by economic and legal hail since the Ericsson list’s revelations. Shareholders voted last month to hold Ericsson’s CEO Börje Ekholm and board members personally responsible for the mismanagement of the company’s Iraq scandal.
The company also said last week that it expects to face new fines from the US Department of Justice for violating the terms of a billion-dollar corruption deal by failing to disclose irregularities in Iraq.
Elsewhere in Sweden, officials are prosecuting four former Ericsson executives for suspected bribery in Djibouti.