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Ericsson bribery progress: $ 1 billion settlement reached with US Justice Department

According to Bloomberg, the U.S. Department of Justice announced details of Ericsson's bribery in several countries. "Ericsson used large amounts of money, bribes, gifts, and corruption to promote its position in the telecommunications industry and conducted telecommunications business under the guidance of money negotiations. Government officials in five countries involved more than tens of millions of dollars. "

The U.S. Department of Justice alleges that during the sixteen years from 2000 to 2016, Ericsson bribed government officials in several countries through third-party agents and consultants, forged records of books, failed to implement reasonable internal accounting controls, and failed to adopt appropriate measures for certain employees. Disciplinary measures violate the "Anti-corruption Act (FCPA)" enacted by the United States in 1977.

Ericsson acknowledged that in order to obtain a contract with Djibouti's state-owned telecommunications company, between 2010 and 2014, it exercised US $ 2.1 million in bribes to certain senior government officials in Djibouti through a subsidiary, signed false contracts, and forged receipts for accounting purposes.

The U.S. Department of Justice revealed that in a large Eastern country, Ericsson bribed tens of millions of dollars to consultants and suppliers in the 16 years after 2000 to provide gifts, travel expenses, and other entertainment expenses to bribe recipients. In addition, the US Department of Justice also disclosed several off-book payments in India, Vietnam, and Kuwait.

Ericsson's Egyptian subsidiary pleads guilty to one count of conspiracy, and one department pleads guilty to "overseas bribery."

Ericsson and the U.S. Department of Justice reach a settlement and sign a three-year deferred prosecution agreement (DPA). Ericsson will pay a US $ 520 million criminal fine to the U.S. Department of Justice. Prosecution against Ericsson. The U.S. Department of Justice said that in view of Ericsson's cooperation with investigators since 2013, the final fines have actually been reduced by 15%.

In addition, Ericsson will also pay $ 540 million in civil compensation to the US Securities and Exchange Commission. As one of the conditions for the settlement, Ericsson will set up an independent supervision department to carry out system reforms within the company to ensure legal compliance in the future.