Udayavni Special

Ericsson to pay $1 bn over bribery allegations: US govt


Team Udayavani, Dec 7, 2019, 10:28 AM IST

Washington: Swedish telecoms firm Ericsson has agreed to pay more than $1 billion to resolve allegations of bribery spanning Asia and the Middle East, the US Justice Department announced Friday.

An Egyptian subsidiary also pleaded guilty in a federal court in New York to a charge of conspiring to violate the 1977 Foreign Corrupt Practices Act.

“Ericsson’s corrupt conduct involved high-level executives and spanned 17 years and at least five countries, all in a misguided effort to increase profits,” Brian Benczkowski, head of the Justice Department’s criminal division, said in a statement.

US law grants jurisdiction over corruption by companies whose shares are sold on American stock markets or if the crime touches the country’s territory or its financial system.

Prosecutors say that between 2000 and 2016, the company engaged in a scheme to pay bribes, falsify its books and records and ensure company officials turned a blind eye to the corruption, according to the Justice Department statement.

Alleged corruption occurred in Djibouti, China, Vietnam, Indonesia and Kuwait.

Among other examples, Ericsson admitted that during those years it channeled tens of millions of dollars through consultants and service providers in China, creating a slush fund to lavish gifts, travel and entertainment on foreign officials in order to win business from state-owned telecoms companies.

In a statement on its website, the company said it would not comment on the matter other than to say the figure of $1.2 billion, disclosed in September, “is still its current estimate of the amounts needed to cover the monetary sanctions” and other costs.

The funds are to be split between the Justice Department and the Securities and Exchange Commission, according to the Justice Department.

The two agencies jointly enforce US foreign bribery laws.

The company has also agreed to retain a third-party monitor to oversee its compliance for three years.

A total of 44 countries have enacted laws criminalizing the payment of bribes to foreign officials to win business, but the United States has long been the most active in punishing international corruption.

Top News

COVID-19 recovery rate rises to 68.32%, fatality dips to 2.04%: Centre

K’taka COVID-19 update: 7178 new cases; 5006 discharges; 93 deaths on Aug 8

Covid 19: 194 new cases, 183 discharges & 6 fatalities reported in DK

DK: Dist admin releases advisory after Red Alert issued for Aug 8 and 9

PM to review K’taka flood situation on Mon

13 districts reporting high COVID-19 mortality: Health Ministy

Border row: India and China hold Major General-level talks



Related Articles More

RBI sets up panel under KV Kamath to suggest steps to deal with COVID-related stressed assets

Parasuraman new President of BCIC

Harman bets big on gaming segment in India

Vodafone-Idea Q1 losses at Rs 25,460 crore on provisioning for statutory dues

RBI to allow offline payments through cards on pilot basis

MUST WATCH

What is a Tabletop runway? Is it risky?

pick-up vehicle was hit by a flood and washed away in Bajatur village | Udayavani

What Happens If All The Bees Die? | Udayavani

Horticulture in 75 cents land | Success Story of Padmanabha | Udayavani

Shankar Suvarna | Interview with successful Dairy Farmer | Agriculture

Latest Additions

COVID-19 recovery rate rises to 68.32%, fatality dips to 2.04%: Centre

Real reaction to imagined accusations: DKShi on DyCM’s remarks

K’taka COVID-19 update: 7178 new cases; 5006 discharges; 93 deaths on Aug 8

Pramod Muthalik accuses central govt of appeasement over Ram temple

Shantha Mallikarjuna Swamy coronated as succesor to Saluru Matha

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.